10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended:		December 31, 2012
or

[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from		to

Commission file number: 001-35019

HOME FEDERAL BANCORP, INC. OF LOUISIANA
(Exact name of registrant as specified in its charter)
Louisiana	02-0815311
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.
624 Market Street, Shreveport, Louisiana		71101
(Address of principal executive offices)		(Zip Code)
(318) 222-1145
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check One):

Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer   [ ]	Smaller reporting company [X]
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

Shares of common stock, par value $.01 per share, outstanding as of February 8, 2013: The registrant had 2,352,820 shares of common stock outstanding.

INDEX

PART I - FINANCIAL INFORMATION		Page
Item 1:	Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Stockholders' Equity	4
	Consolidated Statements of Cash Flows	5
	Notes to Consolidated Financial Statements	7
Item 2:	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4:	Controls and Procedures	31
PART II - OTHER INFORMATION
Item 1:	Legal Proceedings	31
Item 1A:	Risk Factors	31
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3:	Defaults Upon Senior Securities	32
Item 4:	Mine Safety Disclosures	32
Item 5:	Other Information	32
Item 6:	Exhibits	32
SIGNATURES

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
	December 31, 2012			June 30, 2012
	(Dollars In Thousands)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $1,071 and $31,486 for December 31, 2012 and June 30, 2012, Respectively)	$	5,475		$	34,863
Securities Available-for-Sale		59,038			68,426
Securities Held-to-Maturity		1,633			1,381
Loans Held-for-Sale		8,377			11,157
Loans Receivable, Net of Allowance for Loan Losses of $1,925 and $1,698, Respectively		185,264			168,263
Accrued Interest Receivable		803			826
Premises and Equipment, Net		5,496			4,872
Bank Owned Life Insurance		5,940			5,844
Other Assets		275			551
Deferred Tax Asset		199			--
Total Assets	$	272,500		$	296,183
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits	$	196,158		$	221,436
Advances from Borrowers for Taxes and Insurance		106			256
Advances from Federal Home Loan Bank of Dallas		30,243			23,469
Other Accrued Expenses and Liabilities		747			1,098
Deferred Tax Liability		--			36
Total Liabilities		227,254			246,295
STOCKHOLDERS’ EQUITY
Preferred Stock – 10,000,000 Shares of $.01 Par Value    Authorized; None Issued and Outstanding		--			--
Common Stock – 40,000,000 Shares of $.01 Par Value    Authorized; 3,062,386 Shares Issued and    2,556,829 Shares Outstanding at December 31, 2012;    2,877,032 Shares Outstanding at June 30, 2012		32			32
Additional Paid-in Capital		31,919			31,199
Treasury Stock, at Cost – 505,557 shares at December 31, 2012;    185,354 at June 30, 2012		(9,264	)		(2,706	)
Unearned ESOP Stock		(1,734	)		(1,792	)
Unearned RRP Trust Stock		(1,105	)		(1,114	)
Retained Earnings		24,377			22,897
Accumulated Other Comprehensive Income		1,021			1,372
Total Stockholders’ Equity		45,246			49,888
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	272,500		$	296,183

See accompanying notes to consolidated financial statements.

1

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended December 31,				For the Six Months Ended December 31,
	2012		2011		2012		2011
	(In Thousands, Except Per Share Data)
INTEREST INCOME
Loans, Including Fees	$	2,843	$	2,507	$	5,684	$	4,769
Investment Securities		7		16		14		80
Mortgage-Backed Securities		447		700		932		1,242
Other Interest-Earning Assets		2		3		8		8
Total Interest Income		3,299		3,226		6,638		6,099
INTEREST EXPENSE
Deposits		557		628		1,150		1,249
Other Bank Borrowings		3		--		3		--
Federal Home Loan Bank Borrowings		87		161		187		337
Total Interest Expense		647		789		1,340		1,586
Net Interest Income		2,652		2,437		5,298		4,513
PROVISION FOR LOAN LOSSES		116		188		227		274
Net Interest Income after Provision for Loan Losses		2,536		2,249		5,071		4,239
NON-INTEREST INCOME
Gain on Sale of Loans		654		498		1,336		1,091
Gain on Sale of Investments		120		51		215		254
Income on Bank Owned Life Insurance		48		52		97		108
Other Income		97		101		203		192
Total Non-Interest Income		919		702		1,851		1,645
NON-INTEREST EXPENSE
Compensation and Benefits		1,347		1,205		2,664		2,326
Occupancy and Equipment		187		173		393		369
Data Processing		99		90		187		166
Audit and Examination Fees		58		65		106		115
Franchise and Bank Shares Tax		57		49		141		144
Advertising		60		76		120		136
Legal Fees		159		125		247		202
Loan and Collection		21		26		61		57
Deposit Insurance Premium		32		28		63		53
Other Expense		114		117		213		238
Total Non-Interest Expense		2,134		1,954		4,195		3,806
Income Before Income Taxes		1,321		997		2,727		2,078
PROVISION FOR INCOME TAX EXPENSE		440		317		908		596
Net Income	$	881	$	680	$	1,819	$	1,482
EARNINGS PER COMMON SHARE:
Basic	$	0.36	$	0.24	$	0.73	$	0.52
Diluted	$	0.35	$	0.23	$	0.71	$	0.51
DIVIDENDS DECLARED	$	0.06	$	0.06	$	0.12	$	0.12

See accompanying notes to consolidated financial statements.

2

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended December 31,						For the Six Months Ended December 31,
	2012			2011			2012			2011
	(In Thousands)
Net Income	$	881		$	680		$	1,819		$	1,482
Other Comprehensive Income (Loss), Net of Tax
Unrealized Holding Gain (Loss) on Securities Available-for-Sale,      Net of Tax of $158 and $106 in 2012, respectively, and      $242 and $20 in 2011, respectively		(307	)		(470	)		(204	)		39
Reclassification Adjustment for Gain Included in      Net Income, Net of Tax of $47 and $75 in 2012,      respectively, and $37 and $98 in 2011, respectively		(90	)		(72	)		(147	)		(189	)
Net Other Comprehensive Income (Loss)		(397	)		(542	)		(351	)		(150	)
Total Comprehensive Income	$	484		$	138		$	1,468		$	1,332

See accompanying notes to consolidated financial statements.

3

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

SIX MONTHS ENDED DECEMBER 31, 2012 AND 2011

(Unaudited)

	Common Stock		Additional Paid-in Capital		Unearned ESOP Stock			Unearned RRP Trust Stock			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
								(In Thousands)
BALANCE – June 30, 2011	$	32	$	30,880	$	(1,907	)	$	(29	)	$	20,781		$	--		$	1,426		$	51,183
Net Income		--		--		--			--			1,482			--			--			1,482
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--			--			--			(150	)		(150	)
RRP Shares Earned		--		--		--			8			--			--			--			8
Stock Options Vested		--		5		--			--			--			--			--			5
Common Stock Issuance for     Stock Option Exercise		--		66		--			--			--			--			--			66
ESOP Compensation Earned		--		18		58			--			--			--			--			76
Dividends Declared		--		--		--			--			(365	)		--			--			(365	)
BALANCE – December 31, 2011	$	32	$	30,969	$	(1,849	)	$	(21	)	$	21,898		$	--		$	1,276		$	52,305
BALANCE – June 30, 2012	$	32	$	31,199	$	(1,792	)	$	(1,114	)	$	22,897		$	(2,706	)	$	1,372		$	49,888
Net Income		--		--		--			--			1,819			--			--			1,819
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--			--			--			(351	)		(351	)
RRP Shares Earned		--		--		--			9			--			--			--			9
Stock Options Vested		--		83		--			--			--			--			--			83
Common Stock Issuance for      Stock Option Exercises		--		597		--			--			--			--			--			597
ESOP Compensation Earned		--		40		58			--			--			--			--			98
Acquisition of Treasury Stock		--		--		--			--			--			(6,558	)		--			(6,558	)
Dividends Declared		--		--		--			--			(339	)		--			--			(339	)
BALANCE – December 31, 2012	$	32	$	31,919	$	(1,734	)	$	(1,105	)	$	24,377		$	(9,264	)	$	1,021		$	45,246

See accompanying notes to consolidated financial statements.

4

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Six Months Ended
	December 31,
	2012			2011
	(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,819		$	1,482
Adjustments to Reconcile Net Income to Net
Cash Provided by (Used in) Operating Activities
Net Amortization and Accretion on Securities		(8	)		(41	)
Gain on Sale of Securities		(215	)		(254	)
Gain on Sale of Loans		(1,336	)		(1,091	)
Amortization of Deferred Loan Fees		(153	)		(307	)
Depreciation of Premises and Equipment		102			108
ESOP Expense		98			77
Stock Option Expense		83			5
Recognition and Retention Plan Expense		105			3
Deferred Income Tax		(54	)		(121	)
Provision for Loan Losses		227			274
Changes in Assets and Liabilities:
Loans Held-for-Sale – Originations and Purchases		(61,530	)		(61,309	)
Loans Held-for-Sale – Sale and Principal Repayments		65,647			56,455
Accrued Interest Receivable		24			25
Other Operating Assets		277			52
Other Operating Liabilities		(446	)		(251	)
Net Cash Provided by (Used in) Operating Activities		4,640			(4,893	)
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections		(17,139	)		(15,348	)
Deferred Loan Fees Collected		64			467
Acquisition of Premises and Equipment		(726	)		(1,106	)
Activity in Available-for-Sale Securities:
Proceeds from Sales of Securities		33,347			39,912
Principal Payments on Mortgage-Backed Securities		7,246			7,238
Purchases of Securities		(31,515	)		(48,095	)
Activity in Held-to-Maturity Securities:
Redemption Proceeds		107			--
Principal Payments on Mortgage-Backed Securities		--			525
Purchases of Securities		(359	)		(71	)
Increase in Cash Surrender Value on Bank Owned Life Insurance		(97	)		(108	)
Net Cash Used in Investing Activities		(9,072	)		(16,586	)

See accompanying notes to consolidated financial statements.

5

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
	Six Months Ended
	December 31,
	2012			2011
	(In Thousands)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	$	(25,278	)	$	19,845
Proceeds from Federal Home Loan Bank Advances		83,500			16,500
Repayments of Advances from Federal Home Loan Bank		(76,726	)		(17,780	)
Net Decrease in Advances from Borrowers for Taxes and Insurance		(151	)		(127	)
Dividends Paid		(339	)		(365	)
Acquisition of Treasury Stock		(6,416	)		--
Proceeds from Stock Options Exercised		454			66
Proceeds from Other Bank Borrowings		1,000			--
Repayment of Other Bank Borrowings		(1,000	)		--
Net Cash (Used In) Provided by Financing Activities		(24,956	)		18,139
NET DECREASE IN CASH AND CASH EQUIVALENTS		(29,388	)		(3,340	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		34,863			9,599
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	5,475		$	6,259
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	$	1,354		$	1,605
Income Taxes Paid		1,008			656
Market Value Adjustment for Gain on Securities
Available-for-Sale		(533	)		(227	)
Acquisition of Treasury Stock with Stock Issuance		143			--

See accompanying notes to consolidated financial statements.

6

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.           Summary of Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”).  These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the six month period ended December 31, 2012, is not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2013.

The Company follows accounting standards set by the Financial Accounting Standards Board (the “FASB”). The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our financial condition, results of operations and cash flows.  References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (the “Codification” or the “ASC”).

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of December 31, 2012.  In preparing these financial statements, the Company evaluated the events and transactions that occurred through the date these financial statements were issued.

Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses.

Nature of Operations

Home Federal Bancorp, Inc. of Louisiana, a Louisiana corporation, is the fully public stock holding company for Home Federal Bank located in Shreveport, Louisiana.  The Bank is a federally chartered, stock savings and loan association and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.  The Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. Services are provided to the Bank’s customers by four full-service banking offices and one agency office, located in Caddo and Bossier Parishes, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of December 31, 2012, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which is currently inactive.

Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.

7

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.           Summary of Accounting Policies (continued)

Securities

The Company classifies its debt and equity investment securities into one of three categories:  held-to-maturity, available-for-sale, or trading.  Investments in nonmarketable equity securities and debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at amortized cost.  Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.  Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities.  Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale.

Trading account and available-for-sale securities are carried at fair value.  Unrealized holding gains and losses on trading securities are included in earnings while net unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income.  Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities.  Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Loans Held-for-Sale

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate.  Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.

Loans

Loans receivable are stated at unpaid principal balances, less allowances for loan losses and unamortized deferred loan fees.  Net nonrefundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment of yield on the related interest earning assets using the interest method.  Interest income on contractual loans receivable is recognized on the accrual method.  Unearned discount on property improvement and automobile loans is deferred and amortized on the interest method over the life of the loan.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings.  Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of the underlying collateral and prevailing economic conditions.  The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

8

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.           Summary of Accounting Policies (continued)

Allowance for Loan Losses (continued)

A loan is considered impaired when, based on current information or events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement.  When a loan is impaired, the measurement of such impairment is based upon the present value of expected future cash flows or the fair value of the collateral of the loan.  If the present value of expected future cash flows or fair value of the collateral is less than the recorded investment in the loan, the Bank will recognize the impairment by creating a valuation allowance with a corresponding charge against earnings.

An allowance is also established for uncollectible interest on loans classified as substandard.  The allowance is established by a charge to interest income equal to all interest previously accrued and income is subsequently recognized only to the extent that cash payments are received.  When, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is back to normal, the loan is returned to accrual status.

It should be understood that estimates of future loan losses involve an exercise of judgment.  While it is possible that in particular periods the Company may sustain losses which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses reflected in the accompanying statements of condition is adequate to absorb possible losses in the existing loan portfolio.

Off-Balance Sheet Credit Related Financial Instruments

In the ordinary course of business, the Bank has entered into commitments to extend credit.  Such financial instruments are recorded when they are funded.

Foreclosed Assets

Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and are transferred to other real estate owned at the lower of cost or current fair value minus estimated cost to sell as of the date of foreclosure.  Cost is defined as the lower of the fair value of the property or the recorded investment in the loan.  Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell.

Premises and Equipment

Land is carried at cost.  Buildings and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets.

Income Taxes

The Company and its wholly-owned subsidiary file a consolidated Federal income tax return on a fiscal year basis.  Each entity pays its pro-rata share of income taxes in accordance with a written tax-sharing agreement.

The Company accounts for income taxes on the asset and liability method.  Deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates.  A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.  Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized.  Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of taxes receivable or payable.

9

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.           Summary of Accounting Policies (continued)

Income Taxes (continued)

While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders’ equity and net income.

Comprehensive Income

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the Consolidated Statements of Financial Condition, such items, along with net income, are components of comprehensive income.

2.           Securities

The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:

	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	518	$	26	$	--	$	544
FNMA Mortgage-Backed Certificates		16,172		1,471		--		17,643
GNMA Mortgage-Backed Certificates		39,511		162		116		39,557
Total Debt Securities		56,201		1,659		116		57,744
Equity Securities
176,612 Shares, AMF ARM Fund		1,291		3		--		1,294
Total Securities Available-for-Sale	$	57,492	$	1,662	$	116	$	59,038
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
13,831 Shares – Federal Home Loan Bank		1,383		--		--		1,383
630 Shares – First National Bankers     Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,633		--		--		1,633
Total Securities Held-to-Maturity	$	1,633	$	--	$	--	$	1,633

10

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.           Securities (continued)

	June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	635	$	33	$	--	$	668
FNMA Mortgage-Backed Certificates		21,099		1,875		--		22,974
GNMA Mortgage-Backed Certificates		43,322		160		--		43,482
Total Debt Securities		65,056		2,068		--		67,124
Equity Securities
176,612 Shares, AMF ARM Fund		1,291		11		--		1,302
Total Securities Available-for-Sale	$	66,347	$	2,079	$	--	$	68,426
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
11,307 Shares – Federal Home Loan Bank		1,131		--		--		1,131
630 Shares – First National Bankers      Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,381		--		--		1,381
Total Securities Held-to-Maturity	$	1,381	$	--	$	--	$	1,381

The amortized cost and fair value of debt securities by contractual maturity at December 31, 2012, follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Within One Year or Less	$	--	$	--	$	--	$	--
One through Five Years		166		171		--		--
After Five through Ten Years		505		524		--		--
Over Ten Years		55,530		57,049		--		--
Total	$	56,201	$	57,744	$	--	$	--

For the six months ended December 31, 2012, proceeds from the sale of securities available-for-sale amounted to $33.3­­­­ million. Gross realized gains amounted to $215,000 for the six months ended December 31, 2012.

11

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.           Securities (continued)

The following table shows information pertaining to gross unrealized losses on securities available-for-sale at December 31, 2012 aggregated by investment category and length of time that individual securities have been in a continuous loss position.  There were no unrealized losses on securities at June 30, 2012, and there were no unrealized losses on securities held-to-maturity at December 31, 2012.

	December 31, 2012
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale:
Debt Securities
Mortgage-Backed Securities	$	116	$	30,922	$	--	$	--
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	116	$	30,922	$	--	$	--

The Company’s investment in equity securities consists primarily of FHLB stock, a $1.3 million (book value) investment in an adjustable-rate mortgage fund (referred to as the ARM Fund) and shares of First National Bankers Bankshares, Inc. (“FNBB”).  The fair value of the ARM Fund has traditionally correlated with the interest rate environment.  At December 31, 2012, the unrealized gain on this investment was $3,000.  Management monitors its investment portfolio to determine whether any investment securities which have unrealized losses should be considered other than temporarily impaired.

At December 31, 2012, securities with a carrying value of $3.4 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $94.6 million were pledged to secure FHLB advances.

3.           Loans Receivable

Loans receivable are summarized as follows:

	December 31, 2012			June 30, 2012
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	63,608		$	59,410
Commercial		49,781			39,230
Multi-Family Residential		19,681			12,919
Land		15,022			12,317
Construction		13,403			22,660
Equity and Second Mortgage		2,401			2,520
Equity Lines of Credit		9,039			8,461
Total Mortgage Loans		172,935			157,517
Commercial Loans		14,107			12,369
Consumer Loans
Loans on Savings Accounts		269			227
Automobile and Other Consumer Loans		169			228
Total Consumer and Other Loans		438			455
Total Loans		187,480			170,341
Less: Allowance for Loan Losses		(1,925	)		(1,698	)
Unamortized Loan Fees		(291	)		(380	)
Net Loans Receivable	$	185,264		$	168,263

12

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Following is a summary of changes in the allowance for loan losses:

	Six Months Ended December 31,
	2012		2011
	(In Thousands)
Balance - Beginning of Period	$	1,698	$	842
Provision for Loan Losses		227		274
Loan Charge-Offs		--		--
Balance - End of Period	$	1,925	$	1,116

Credit Quality Indicators

The Company segregates loans into risk categories based on the pertinent information about the ability of borrowers to service their debt such as:  current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying the loans according to credit risk.  Loans classified as substandard or identified as special mention are reviewed quarterly by management to evaluate the level of deterioration, improvement, and impairment, if any, as well as assign the appropriate risk category.

Loans excluded from the scope of the quarterly review process above are generally identified as pass credits until:  (a) they become past due; (b) management becomes aware of deterioration in the credit worthiness of the borrower; or (c) the customer contacts the Company for a modification.  In these circumstances, the loan is specifically evaluated for potential classification and the need to allocate reserves or charge-off.  The Company uses the following definitions for risk ratings:

Special Mention - Loans identified as special mention have a potential weakness that deserves management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any.  Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss - This classification includes those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted.  Even though partial recovery may be possible in the future, it is not practical or desirable to defer writing off these basically worthless loans.  Accordingly, these loans are charged-off before period end.

13

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

The following tables present the grading of loans, segregated by class of loans, as of December 31, 2012 and June 30, 2012:

December 31, 2012	Pass		Special Mention		Substandard		Doubtful		Total
			(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	62,138	$	1,109	$	361	$	--	$	63,608
Commercial		49,781		--		--		--		49,781
Multi-Family Residential		19,681		--		--		--		19,681
Land		15,022		--		--		--		15,022
Construction		13,403		--		--		--		13,403
Equity and Second Mortgage		2,401		--		--		--		2,401
Equity Lines of Credit		8,907		--		132		--		9,039
Commercial Loans		14,107		--		--		--		14,107
Consumer Loans		438		--		--		--		438
Total	$	185,878	$	1,109	$	493	$	--	$	187,480

June 30, 2012	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	58,531	$	517	$	362	$	--	$	59,410
Commercial		39,230		--		--		--		39,230
Multi-Family Residential		12,919		--		--		--		12,919
Land		12,317		--		--		--		12,317
Construction		22,660		--		--		--		22,660
Equity and Second Mortgage		2,520		--		--		--		2,520
Equity Lines of Credit		8,345		27		89		--		8,461
Commercial Loans		12,369		--		--		--		12,369
Consumer Loans		455		--		--		--		455
Total	$	169,346	$	544	$	451	$	--	$	170,341

14

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when contractually due.  Loans that experience insignificant payment delays or payment shortfalls are generally not classified as impaired.  On a case-by-case basis, management determines the significance of payment delays and payment shortfalls, taking into consideration all of the circumstances related to the loan, including:  the length of the payment delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The following tables present an aging analysis of past due loans, segregated by class of loans, as of December 31, 2012 and June 30, 2012:

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
							(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,675	$	507	$	1,444	$	3,626	$	59,982	$	63,608	$	1,109
Commercial		--		--		--		--		49,781		49,781		--
Multi-Family Residential		--		--		--		--		19,681		19,681		--
Land		--		--		--		--		15,022		15,022		--
Construction		--		--		--		--		13,403		13,403		--
Equity and Second Mortgage		--		--		--		--		2,401		2,401		--
Equity Lines of Credit		--		--		43		43		8,996		9,039		--
Commercial Loans		--		--		--		--		14,107		14,107		--
Consumer Loans		--		--		--		--		438		438		--
Total	$	1,675	$	507	$	1,487	$	3,669	$	183,811	$	187,480	$	1,109

June 30, 2012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,039	$	1,024	$	14	$	3,077	$	56,333	$	59,410	$	--
Commercial		--		--		--		--		39,230		39,230		--
Multi-Family Residential		--		--		--		--		12,919		12,919		--
Land		--		--		--		--		12,317		12,317		--
Construction		--		--		--		--		22,660		22,660		--
Equity and Second Mortgage	--			--		--		--		2,520		2,520		--
Equity Lines of Credit		--		--		--		--		8,461		8,461		--
Commercial Loans		--		--		--		--		12,369		12,369		--
Consumer Loans		--		--		--		--		455		455		--
Total	$	2,039	$	1,024	$	14	$	3,077	$	167,264	$	170,341	$	--

Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties are considered troubled debt restructurings and classified as impaired.  There were no troubled debt restructurings as of December 31, 2012 or June 30, 2012.

15

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the six months ended December 31, 2012 and the year ended June 30, 2012, was as follows:

	Real Estate Loans
December 31, 2012	Residential		Commercial		Multi- Family			Land			Construction			Other		Commercial Loans			Consumer Loans			Total
								(In Thousands)
Allowance for loan losses:
Beginning Balances	$	416	$	185	$	205		$	270		$	311		$	--	$	281		$	30		$	1,698
Charge-Offs		--		--		--			--			--			--		--			--			--
Recoveries		--		--		--			--			--			--		--			--			--
Current Provision		594		135		(108	)		(117	)		(149	)		--		(127	)		(1	)		227
Ending Balances	$	1,010	$	320	$	97		$	153		$	162		$	--	$	154		$	29		$	1,925
Evaluated for Impairment:
Individually		--		--		--			--			--			--		--			--			--
Collectively		1,010		320		97			153			162			--		154			29			1,925
Loans Receivable:
Ending Balances - Total	$	63,608	$	49,781	$	19,681		$	15,022		$	13,403		$	11,440	$	14,107		$	438		$	187,480
Ending Balances:
Evaluated for Impairment:
Individually		335		--		--			--			--			--		--			--			335
Collectively	$	63,273	$	49,781	$	19,681		$	15,022		$	13,403		$	11,440	$	14,107		$	438		$	187,145

		Real Estate Loans
June 30, 2012	Residential			Commercial		Multi- Family		Land		Construction		Other		Commercial Loans		Consumer Loans		Total
Allowance for loan losses:
Beginning Balances	$	110	$	125	$	140	$	150	$	130	$	--	$	175	$	12	$	842
Charge-Offs		--		--		--		--		--		--		--		--		--
Recoveries		--		--		--		--		--		--		--		--		--
Current Provision		306		60		65		120		181		--		106		18		856
Ending Balances	$	416	$	185	$	205	$	270	$	311	$	--	$	281	$	30	$	1,698
Evaluated for Impairment:
Individually		--		--		--		--		--		--		--		--		--
Collectively		416		185		205		270		311		--		281		30		1,698
Loans Receivable:
Ending Balances - Total	$	59,410	$	39,230	$	12,919	$	12,317	$	22,660	$	10,981	$	12,369	$	455	$	170,341
Ending Balances:
Evaluated for Impairment:
Individually		14		--		--		--		--		--		--		--		14
Collectively	$	59,396	$	39,230	$	12,919	$	12,317	$	22,660	$	10,981	$	12,369	$	455	$	170,327

16

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

The change in the allowance for loan losses by loan portfolio class for the six months ended December 31, 2011, was as follows:

	Real Estate Loans
December 31, 2011	Residential		Commercial			Multi- Family			Land		Construction			Other		Commercial Loans		Consumer Loans			Total
									(In Thousands)
Allowance for loan losses:
Beginning Balances	$	110	$	125		$	140		$	150	$	130		$	--	$	175	$	12		$	842
Charge-Offs		--		--			--			--		--			--		--		--			--
Recoveries		--		--			--			--		--			--		--		--			--
Current Provision		115		(65	)		(37	)		230		(14	)		--		48		(3	)		274
Ending Balances	$	225	$	60		$	103		$	380	$	116		$	--	$	223	$	9		$	1,116
Evaluated for Impairment:
Individually		--		--			--			--		--			--		--		--			--
Collectively		225		60			103			380		116			--		223		9			1,116
Loans Receivable:
Ending Balances - Total	$	48,828	$	34,228		$	13,006		$	11,738	$	13,060		$	7,647	$	12,859	$	472		$	141,838
Ending Balances:
Evaluated for Impairment:
Individually		217		--			--			--		--			--		--		--			217
Collectively	$	48,611	$	34,228		$	13,006		$	11,738	$	13,060		$	7,647	$	12,859	$	472		$	141,621

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of December 31, 2012 and June 30, 2012:

December 31, 2012	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	335	$	335	$	--	$	335	$	--	$	347
Commercial		--		--		--		--		--		--
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	335	$	335	$	--	$	335	$	--	$	347

June 30, 2012	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	14	$	14	$	--	$	14	$	--	$	14
Commercial		--		--		--		--		--		--
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	14	$	14	$	--	$	14	$	--	$	14

17

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status. Loans totaling $14,000 were in non-accrual status at June 30, 2012. Loans totaling $378,000 were in non-accrual status at December 31, 2012.

4.           Deposits

Deposits at December 31, 3012 and June 30, 2012 consist of the following classifications:

	December 31, 2012		June 30, 2012
	(In Thousands)
Non-Interest Bearing	$	26,803	$	20,575
NOW Accounts		19,071		16,887
Money Markets		37,383		68,446
Passbook Savings		5,960		6,893
		89,217		112,801
Certificates of Deposit		106,941		108,635
Total Deposits	$	196,158	$	221,436

5.           Earnings Per Share

Basic earnings per common share are computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three and six months ended December 31, 2012 and 2011 were calculated as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
	(In Thousands, Except Per Share Data)
Net income	$	881	$	680	$	1,819	$	1,482
Weighted average shares outstanding - basic		2,420,591		2,865,535		2,507,336		2,862,055
Effect of dilutive common stock equivalents		67,839		33,408		67,797		30,719
Adjusted weighted average shares outstanding - diluted		2,488,430		2,898,943		2,575,133		2,892,774
Basic earnings per share	$	0.36	$	0.24	$	0.73	$	0.52
Diluted earnings per share	$	0.35	$	0.23	$	0.71	$	0.51

For the three months ended December 31, 2012 and 2011, there were outstanding options to purchase 287,540 and 152,816 shares, respectively, at a weighted average exercise price of $13.44 per share and for the six months ended December 31, 2012 and 2011, there were outstanding options to purchase 304,007 and 154,856 shares, respectively, at a weighted average exercise price of $13.31 per share. For the quarter ended December 31, 2012, 68,000 options were included in the computation of diluted earnings per share.

18

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5.           Earnings Per Share (continued)

Recognition and Retention Plan (continued)

The following table presents the components of weighted average outstanding shares for purposes of calculating earnings per share:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Average common shares issued		3,062,386			3,051,881			3,062,386			3,049,842
Average unearned ESOP shares		(174,815	)		(186,346	)		(176,256	)		(187,787	)
Average unearned RRP shares		(77,808	)		--			(77,808	)		--
Average treasury shares		(389,172	)		--			(300,986	)		--
Weighted average shares outstanding		2,420,591			2,865,535			2,507,336			2,862,055

6.           Stock-Based Compensation

Recognition and Retention Plan

On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Recognition and Retention Plan and Trust Agreement (the “2005 Recognition Plan”) as an incentive to retain personnel of experience and ability in key positions.  The aggregate number of shares of the Company’s common stock subject to award under the 2005 Recognition Plan totaled 63,547 shares (as adjusted for the exchange ratio of 0.9110 on December 22, 2010).  As the shares were acquired for the 2005 Recognition Plan, the purchase price of these shares was recorded as a contra equity account.  As the shares are distributed, the contra equity account is reduced.  During the six months ended December 31, 2012, 561 shares vested and were released from the 2005 Recognition Plan Trust and 1,686 shares remained in the 2005 Recognition Plan Trust at December 31, 2012.

On December 23, 2011, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2011 Recognition and Retention Plan and Trust Agreement (the “2011 Recognition Plan”, together with the 2005 Recognition  Plan, the  “Recognition  Plan”) as  an  incentive  to  retain  personnel  of  experience and ability in key positions.  The aggregate number of shares of the Company’s common stock available for award under the 2011 Recognition Plan totaled 77,808 shares.  As of December 31, 2012, 69,251 shares were awarded under the 2011 Recognition Plan.

Recognition Plan shares are earned by recipients at a rate of 20% of the aggregate number of shares covered by the Recognition Plan award over five years.  Generally, if the employment of an employee or service as a non-employee director is terminated prior to the fifth anniversary of the date of grant of Recognition Plan share award, the recipient shall forfeit the right to any shares subject to the award that have not been earned.  In the case of death or disability of the recipient or a change in control of the Company, the Recognition Plan awards will be vested and shall be distributed as soon as practicable thereafter.

The Recognition Plan cost is recognized over the five year vesting period. During the six months ended December 31, 2012, the Company recognized $105,000 in expense related to the Recognition Plan.

19

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6.           Stock-Based Compensation (continued)

Stock Option Plan

On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan (the “2005 Option Plan”) for the benefit of directors, officers, and other key employees.  The aggregate number of shares of common stock reserved for issuance under the 2005 Option Plan totaled 158,868 (as adjusted).  Both incentive stock options and non-qualified stock options may be granted under the 2005 Option Plan.  As of December 31, 2012, 104,566 options were outstanding under the 2005 Stock Option Plan and 2,133 were available for future grant.

On December 23, 2011, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2011 Stock Option Plan (the “2011 Option Plan”, together with the 2005 option plan, the “Option Plan”) for the benefit of directors, officers, and other key employees.  The aggregate number of shares of common stock reserved for issuance under the 2011 Option Plan totaled 194,522.  Both incentive stock options and non-qualified stock options may be granted under the Option Plan.  As of December 31, 2012, 169,235 options had been granted under the 2011 Option Plan and 25,287 were available for future grant.

Under the Option Plan, the exercise price of each option cannot be less than the fair market value of the underlying common stock as of the date of the option grant and the maximum term is ten years. Incentive stock options and non-qualified stock options granted under the Option Plan become vested and exercisable at a rate of 20% per year over five years, commencing one year from the date of the grant, with an additional 20% vesting on each successive anniversary of the date the option was granted.  No vesting shall occur after an employee’s employment or service as a director is terminated.  In the event of the death or disability of an employee or director or change in control of the Company, the unvested options shall become vested and exercisable.  The Company accounts for the Option Plan under the guidance of FASB ASC Topic 718, Compensation – Stock Compensation.

7.           Related Party Transactions

Certain directors and executive officers were indebted to the Bank in the approximate aggregate amounts of $2.2 million and $1.9 million at December 31, 2012 and June 30, 2012, respectively.

8.           Fair Value Disclosures

The following disclosure is made in accordance with the requirements of ASC 825, Financial Instruments.  Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash.  In cases where quoted market prices are not available, fair values have been estimated using the present value of future cash flows or other valuation techniques.  The results of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment.  Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments.

ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements.  These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.

The following methods and assumptions were used by the Company in estimating fair values of financial instruments:

Cash and Cash Equivalents

The carrying amount approximates the fair value of cash and cash equivalents.

Securities to be Held-to-Maturity and Available-for-Sale

Fair values for investment securities, including mortgage-backed securities, are based on quoted market prices, where available.  If quoted market prices are not available, fair values are based on quoted  market

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8. Fair Value Disclosures (continued)

prices of comparable instruments.  The carrying values of restricted or non-marketable equity securities approximate their fair values.  The carrying amount of accrued investment income approximates its fair value.

Mortgage Loans Held-for-Sale

Because these loans are normally disposed of within ninety days of origination, their carrying value closely approximates the fair value of such loans.

Loans Receivable

For variable-rate loans that re-price frequently and with no significant changes in credit risk, fair value approximates the carrying value.  Fair values for other loans are estimated using the discounted value of expected future cash flows. Interest rates used are those being offered currently for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest receivable approximates its fair value.

Deposit Liabilities

The fair values for demand deposit accounts are, by definition, equal to the amount payable on demand at the reporting date, that is, their carrying amounts.  Fair values for other deposit accounts are estimated using the discounted value of expected future cash flows. The discount rate is estimated using the rates currently offered for deposits of similar maturities.

Advances from Federal Home Loan Bank

The carrying amount of short-term borrowings approximates their fair value.  The fair value of long-term debt is estimated using discounted cash flow analyses based on current incremental borrowing rates for similar borrowing arrangements.

Off-Balance Sheet Credit-Related Instruments

Fair values for outstanding mortgage loan commitments to lend are based on fees currently charged to enter into similar agreements, taking into account the remaining term of the agreements, customer credit quality, and changes in lending rates.

The fair value of interest rate floors and caps contained in some loan servicing agreements and variable rate mortgage loan contracts are considered immaterial within the context of fair value disclosure requirements.  Accordingly, no fair value estimate is provided for these instruments.

The carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	December 31, 2012				June 30, 2012
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	5,475	$	5,475	$	34,863	$	34,863
Securities Available-for-Sale		59,038		59,038		68,426		68,426
Securities to be Held-to-Maturity		1,633		1,633		1,381		1,381
Loans Held-for-Sale		8,377		8,377		11,157		11,157
Loans Receivable		185,264		187,383		168,263		170,138
Financial Liabilities
Deposits		196,158		198,449		221,436		225,651
Advances from FHLB		30,243		30,933		23,469		24,097
Off-Balance Sheet Items
Mortgage Loan Commitments		266		266		237		237

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8. Fair Value Disclosures (continued)

The estimated fair values presented above could be materially different than net realizable value and are only indicative of the individual financial instrument’s fair value.  Accordingly, these estimates should not be considered an indication of the fair value of the Company taken as a whole.

The Company follows the guidance of FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820").  ASC 820 affirms a framework for measuring fair value and expands disclosures about fair value measurements.  SFAS No. 157 was issued to establish a uniform definition of fair value.  The definition of fair value is market-based as opposed to company-specific, and includes the following:

·   Defines fair value as the price that would be received to sell an asset or paid to transfer a liability, in either case, through an orderly transaction between market participants at a measurement date and establishes a framework for measuring fair value;

·   Establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date;

·   Nullifies the guidance in EITF 02-3, which required the deferral of profit at inception of a transaction involving a derivative financial instrument in the absence of observable data supporting the valuation technique;

·   Eliminates large position discounts for financial instruments quoted in active markets and requires consideration of the company’s creditworthiness when valuing liabilities; and

·   Expands disclosures about instrument that are measured at fair value.

The standard establishes a three-level valuation hierarchy for disclosure of fair value measurements.  The valuation hierarchy favors the transparency of inputs to the valuation of an asset or liability as of the measurement date.  The three levels are defined as follows:

·   Level 1 – Fair value is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets in which the Company can participate.

·   Level 2 – Fair value is based upon (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly; (c) inputs other than quoted prices that are observable for the asset or liability or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

·   Level 3 – Fair value is based uponinputs that are unobservable for the asset or liability.  These inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  These inputs are developed based on the best information available in the circumstances, which include the Company’s own data. The Company’s own data used to develop unobservable inputs are adjusted if information indicates that market participants would use different assumptions.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8. Fair Value Disclosures (continued)

Fair values of assets and liabilities measured on a recurring basis at December 31, 2012 and June 30, 2012 are as follows:

	Fair Value Measurements Using:
December 31, 2012	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	544	$	544
FNMA Mortgage-Backed Certificates		--		17,643		17,643
GNMA Mortgage-Backed Certificates		--		39,557		39,557
Equity Securities
ARM Fund		1,294		--		1,294
Total	$	1,294	$	57,744	$	59,038

	Fair Value Measurements Using:
June 30, 2012	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	668	$	668
FBNA Mortgage-Backed Certificates		--		22,974		22,974
GNMA Mortgage-Backed Certificates		--		43,482		43,482
Equity Securities
ARM Fund		1,302		--		1,302
Total	$	1,302	$	67,124	$	68,426

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

The Company’s results of operations are primarily dependent on the results of the Bank, which became a wholly owned subsidiary upon completion of the second-step conversion and reorganization on December 22, 2010.  Prior thereto, the Bank was in the mutual holding company form of organization. The Bank’s results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on its loan and investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings.  Results of operations are also affected by provisions for loan losses and loan sale activities.  Non-interest expense principally consists of compensation and employee benefits, office occupancy and equipment expense, data processing and other expense.  Our results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities.  Future changes in applicable law, regulations or government policies may materially impact our financial conditions and results of operations.

Critical Accounting Policies

Allowance for Loan Losses.  The Company has identified the calculation of the allowance for loan losses as a critical accounting policy, due to the higher degree of judgment and complexity than its other significant accounting policies.  Provisions for loan losses are based upon management’s periodic valuation and assessment of the overall loan portfolio and the underlying collateral, trends in non-performing loans, current economic conditions and other relevant factors in order to maintain the allowance for loan losses at a level believed by management to represent all known and inherent losses in the portfolio that are both probable and reasonably estimable.  Although management uses the best information available, the level of the allowance for loan losses remains an estimate which is subject to significant judgment and short-term change.

Income Taxes. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method.  Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various assets and liabilities and gives current recognition to changes in tax rates and laws.  The realization of our deferred tax assets principally depends upon our achieving projected future taxable income.  We may change our judgments regarding future profitability due to future market conditions and other factors.  We may adjust our deferred tax asset balances if our judgments change.

Discussion of Financial Condition Changes from June 30, 2012 to December 31, 2012

At December 31, 2012, total assets amounted to $272.5 million compared to $296.2 million at June 30, 2012, a decrease of approximately $23.7 million, or 8.0%. The decrease in assets was comprised primarily of decreases in investment securities of $9.1 million, or 13.1%, from $69.8 million at June 30, 2012, to $60.7 million at December 31, 2012, loans held-for-sale of $2.8 million, or 24.9%, from $11.2 million at June 30, 2012 to $8.4 million at December 31, 2012, and a decrease in cash and cash equivalents of $29.4 million, from $34.9 million at June 30, 2012 to $5.5 million at December 31, 2012, partially offset by an increase in net loans receivable of $17.0 million, or 10.1%, from $168.3 million at June 30, 2012 to $185.3 million at December 31, 2012. The $29.4 million decrease in cash and cash equivalents was due to a non-recurring deposit in the fourth quarter of the fiscal year ended June 30, 2012, which had a balance of $31.7 million at June 30, 2012. This deposit was short-term in nature and was fully withdrawn during the quarter ended September 30, 2012. The increase in net loans receivable was attributable primarily to increases in commercial real estate loans of $10.6 million, multi-family residential loans of $6.8 million, one- to-four family residential of $4.2 million, land loans of $2.7 million and commercial business loans of $1.7 million, partially offset by a decrease of $9.3 million in construction loans compared to June 30, 2012. The decrease in investment securities was due to normal principal repayments during the quarter ended December 31, 2012. The decrease in loans held-for-sale primarily reflects a decrease at December 31, 2012 in receivables from financial institutions purchasing the Company’s loans held-for-sale.

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Discussion of Financial Condition Changes from June 30, 2012 to December 31, 2012 (continued)

At December 31, 2012, the Company had $1.4 million of non-performing assets compared to $14,000 at June 30, 2012. Our non-performing assets at December 31, 2012 consisted of eight one- to four-family residential loans purchased from a local mortgage originator secured by property in our market area that are 90 days or more past due and accruing interest, a one- to four-family residential loan we originated that was on non-accrual status and two lines of credit totaling $43,000. Following the expansion of the Company’s mortgage lending operations, the Company has not purchased mortgage loans since fiscal 2008. Non-performing assets at June 30, 2012 consisted of a $14,000 one- to four-family residential mortgage loan on non-accrual status.

The Company’s total liabilities amounted to $227.3 million at December 31, 2012, a decrease of approximately $19.0 million, or 7.7%, compared to total liabilities of $246.3 million at June 30, 2012.  The primary reason for the decrease in liabilities was due to a decrease in deposits of $25.3 million, or 11.4%, from $221.4 million at June 30, 2012 to $196.2 million at December 31, 2012, partially offset by an increase in advances from Federal Home Loan Bank of $6.8 million, or 28.9%, to $30.2 million at December 31, 2012, from $23.5 million at June 30, 2012. The decrease in deposits was primarily due to the withdrawal during the quarter ended September 30, 2012 of the non-recurring deposit discussed above which had a balance of approximately $31.7 million at June 30, 2012. Certificates of Deposit decreased $1.7 million, or 1.6%, from $108.6 million at June 30, 2012 to $106.9 million at December 31, 2012. Interest and non-interest bearing NOW accounts increased $8.4 million, or 22.5%, from $37.5 million at June 30, 2012 to $45.9 million at December 31, 2012. The Company utilizes brokered certificates of deposit as a component of its strategy for lowering Home Federal Bank’s overall cost of funds. The brokered certificates of deposit, all of which have maturity dates greater than twelve months, are callable by Home Federal Bank after twelve months pursuant to early redemption provisions.  At both December 31, 2012 and June 30, 2012, the Company had $10.4million in brokered deposits.

Stockholders’ equity decreased $4.6 million, or 9.3%, to $45.2 million at December 31, 2012 compared to $49.9 million at June 30, 2012.  The primary reasons for the decrease in stockholders’ equity from June 30, 2012, were the acquisition of treasury stock of $6.6 million, dividends paid of $339,000, and a decrease in the Company’s accumulated other comprehensive income of $351,000. These decreases in stockholders’ equity were partially offset by net income of $1.8 million for the six months ended December 31, 2012, proceeds from the issuance of common stock from the exercise of stock options of $597,000 and the vesting of restricted stock awards, stock options and release of Employee Stock Ownership Plan shares totaling $191,000. The Company’s book value per share increased from $17.34 at June 30, 2012 to $17.70 at December 31, 2012 based on shares outstanding of 2,877,032 and 2,556,829, respectively.

The Bank is required to meet minimum capital standards promulgated by the Office of the Comptroller of the Currency (“OCC”).  At December 31, 2012, Home Federal Bank’s regulatory capital was well in excess of the minimum capital requirements.

Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2012 and 2011

General

Net income amounted to $881,000 for the three months ended December 31, 2012 compared to $680,000for the same period in 2011, an increase of $201,000, or 29.6%.  The increase was primarily due to a $215,000 or 8.8%, increase in net interest income, a $217,000, or 30.9%, increase in non-interest income and a $72,000, or 38.3%, decrease in the provision for loan losses, partially offset by an increase of $180,000, or 9.2%, in non-interest expense and a $123,000, or 38.8%, increase in income tax expense for the 2012 period compared to the same period in 2011.  The increase in net interest income for the three months ended December 31, 2012 was primarily due to an increase in interest income and fees from higher loan originations as a result of the hiring of additional loan officers since 2011, and a decrease in the Company’s cost of funds for the three months ended December 31, 2012, compared to the prior year period. The increase in non-interest expense was primarily due to an increase in compensation and benefits expense and other expenses associated with the Company’s growth, including increasing loan volume and related commissions to commercial and residential loan officers and the expansion and improvement of the Company's offices.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2012 and 2011 (continued)

Net income amounted to $1.8 million for the six months ended December 31, 2012 compared to net income of $1.5 millionfor the same period in 2011, an increase of $337,000, or 22.7%.  The increase was primarily due to a $785,000, or 17.4%, increase in net interest income, a $206,000, or 12.5%, increase in non-interest income, and a $47,000, or 17.2%, decrease in the provision for loan losses for the 2012 period compared to the same period for 2011. These changes were partially offset by an increase of $389,000, or 10.2%, in non-interest expense and a $312,000, or 52.3%, increase in income tax expense. The increase in net interest income for the six months ended December 31, 2012 was primarily due to an increase in interest income and fees from higher loan originations and a decrease in the Company’s cost of funds for the six months ended December 31, 2012, compared to the prior year period.  The increase in non-interest expense was primarily due to an increase in compensation and benefits expense of $338,000, or 14.5%, and other expenses associated with the Company’s growth, including a $24,000 increase in occupancy and equipment expense in connection with the expansion and improvement of the Company's offices.

Net Interest Income

Net interest income for the three months ended December 31, 2012 was $2.7 million, an increase of $215,000, or 8.8%, in comparison to $2.4 million for the three months ended December 31, 2011.  This increase was primarily due to an increase of $73,000 in total interest income and a decrease of $142,000 in the Company’s cost of funds.  The increase in total interest income was primarily due to an increase in interest income generated from loans of $336,000, partially offset by a decrease in interest income from mortgage-backed securities of $253,000. The cost of funds from Federal Home Loan Bank borrowings decreased $74,000, or 46.0% during the period while interest paid on deposits also decreased $71,000, or 11.3% during the same period.

Net interest income for the six months ended December 31, 2012 was $5.3 million, an increase of $785,000, or 17.4%, in comparison to $4.5 million for the six months ended December 31, 2011.  This increase was primarily due to an increase of $539,000 in total interest income and a decrease of $246,000 in the Company’s cost of funds.  The increase in total interest income was primarily due to an increase in interest income generated from loans of $915,000, or 19.2%, partially offset by a decrease in interest income from investment securities of $66,000, or 82.5%, and a decrease in interest income from mortgage-backed securities of $310,000 or 25.0%.  The cost of funds from Federal Home Loan Bank borrowings decreased $150,000, or 44.5% during the period while interest paid on deposits also decreased $99,000, or 7.9%, during the same period.

The Company’s average interest rate spread was 3.84% and 3.80% for the three and six months ended December 31, 2012, respectively, compared to 3.69% and 3.47% for the three and six months ended December 31, 2011, respectively.  The Company’s net interest margin was 4.13% and 4.10% for the three and six months ended December 31, 2012, respectively, compared to 4.09% and 3.90% for the three and six months ended December 31, 2011, respectively.  The increase in net interest margin and average interest rate spread for the three and six month periods is attributable primarily to a higher volume of interest earning assets at relatively stable rates.  Net interest income also increased primarily due to the increase in volume of average interest-earning assets.  The increases in average interest rate spread and net interest income was also influenced by decreases in the average rates paid on interest bearing liabilities.

Provision for Losses on Loans

Based on an analysis of historical experience, the volume and type of lending conducted by Home Federal Bank, the status of past due principal and interest payments, general economic conditions, particularly as such conditions relate to our market area and other factors related to the collectability of Home Federal Bank’s loan portfolio, a provision for loan losses of $116,000 and $227,000 was made during the three and six months ended December 31, 2012, respectively, compared to a $188,000 and $274,000 provision made during the three and six months ended December 31, 2011,  respectively.  The allowance for loan losses was $1.9 million, or 1.03% of total loans, at

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2012 and 2011 (continued)

December 31, 2012 compared to $1.1 million, or 0.79%, of total loans at December 31, 2011.  At December 31, 2012, Home Federal Bank had ninenon-performing loans in the aggregate amount of $1.4 million and noother non-performing assets or troubled-debt restructurings.  At December 31, 2011, Home Federal had two non-performing loans in the aggregate amount of $203,000.  There can be no assurance that the loan loss allowance will be sufficient to cover losses on non-performing assets in the future.

Non-interest Income

Total non-interest income amounted to $919,000 for the three months ended December 31, 2012, an increase of $217,000, or 30.9% compared to $702,000 for the same period in 2011.  The increase was primarily due to increases of $156,000 in gain on sale of loans and $69,000 in gain on sale of investments, partially offset by decreases of $4,000 in both other non-interest income and income on bank owned life insurance compared to the same period in 2011.

Total non-interest income amounted to $1.9 million for the six months ended December 31, 2012, an increase of $206,000, or 12.5%, compared to $1.6 million for the same period in 2011.  The increase was primarily due to increases of $245,000 in gain on sale of loans held for sale and $11,000 in other non-interest income, partially offset by decreases of $39,000 in gain on sale of investments and $11,000 in income on bank owned life insurance.

Non-interest Expense

Total non-interest expense increased $180,000, or 9.2%, for the three months ended December 31, 2012 compared to the prior year period.  The increase in non-interest expense was primarily due to an increase in compensation and benefits expense of $142,000, or 11.8%, over the prior year period and increases of $34,000 in legal expenses and $14,000 in occupancy and equipment expenses.

Total non-interest expense increased $389,000, or 10.2%, for the six months ended December 31, 2012 compared to the prior year period.  The increase in non-interest expense was primarily due to an increase in compensation and benefits expense of $338,000, or 14.5%, as well as increases of $45,000 in legal expenses, $24,000 in occupancy and equipment expenses and $21,000 in data processing costs.

The increases in compensation and benefits expense were a result of normal compensation increases including stock options and recognition and retention plan expense and the hiring of additional commercial and residential loan officers.  The aggregate compensation expense recognized by the Company for its Stock Option, ESOP and Recognition and Retention Plans amounted to $145,000 and $286,000 for the three and six months ended December 31, 2012, compared to $43,000 and $85,000 for the three and six months ended December 31, 2011, respectively.

The Louisiana bank shares tax is assessed on the Bank’s equity and earnings.  For the three and six months ended December 31, 2012, the Company recognized franchise and bank shares tax expense of $57,000 and $141,000, respectively, compared to $49,000 and $144,000 for the same periods in 2011.

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Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2012 and 2011 (continued)

Income Taxes

Income taxes amounted to $440,000 and $908,000 for the three and six months ended December 31, 2012, respectively, resulting in effective tax rates of 33.3% for both periods. Income taxes amounted to $317,000 and $596,000 for the three and six months ended December 31, 2011, respectively, resulting in effective tax rates of 31.8% and 28.7%, respectively.  The increase in the effective income tax rate for the six months ended December 31, 2012, compared to the prior year period, is primarily the result of a return to more normalized rates in 2012 following the effect of a combination of a difference in capital gains and losses resulting in a 3.5% reduction and non-taxable income resulting in a 1.8% reduction in rate for the six months ended December 31, 2011.

Average Balances, Net Interest Income, Yields Earned and Rates Paid.  The following tables show for the periods indicated the total dollar amount of interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Tax-exempt income and yields have not been adjusted to a tax-equivalent basis. All average balances are based on monthly balances. Management does not believe that the monthly averages differ significantly from what the daily averages would be. 

	Three months ended December 31,
	2012							2011
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Investment securities	$	60,208	$	454		3.02	%	$	81,196	$	716		3.53	%
Loans receivable		194,620		2,843		5.84			151,798		2,507		6.61
Interest-earning deposits		2,303		2		0.32			5,533		3		0.22
Total interest-earning assets		257,131		3,299		5.13			238,527		3,226		5.41
Non-interest-earning assets		15,985							13,285
Total assets	$	273,116						$	251,812
Interest-bearing liabilities:
Savings accounts		6,679		5		0.29			6,075		22		1.45
NOW accounts		18,950		39		0.83			16,901		21		0.50
Money market accounts		37,732		40		0.43			37,380		53		0.57
Certificate accounts		107,090		473		1.77			94,821		532		2.25
Total deposits		170,451		557		1.31			155,177		628		1.62
FHLB advances		29,584		90		1.22			28,211		161		2.27
Total interest-bearing liabilities		200,035		647		1.29	%		183,388		789		1.72	%
Non-interest-bearing liabilities:
Non-interest bearing demand accounts		25,096							15,698
Other liabilities		1,173							1,737
Total liabilities		226,304							200,823
Total Stockholders’ Equity(1)		46,812							50,989
Total liabilities and equity	$	273,116						$	251,812
Net interest-earning assets	$	57,096						$	55,139
Net interest income; average interest rate spread(2)			$	2,652		3.84	%			$	2,437		3.69	%
Net interest margin(3)						4.13	%						4.09	%
Average interest-earning assets to average   interest-bearing liabilities						128.54	%						130.07	%

__________________

(1) Includes retained earnings and accumulated other comprehensive loss.

(2) Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average rate on interest-bearing liabilities.

(3) Net interest margin is net interest income divided by net average interest-earning assets.

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Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2012 and 2011 (continued)

	Six months ended December 31,
	2012							2011
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Investment securities	$	62,976	$	946		3.01	%	$	79,547	$	1,322		3.32	%
Loans receivable		189,624		5,684		6.00			143,194		4,769		6.66
Interest-earning deposits		5,701		8		0.28			8,883		8		0.18
Total interest-earning assets		258,301		6,638		5.14			231,624		6,099		5.27
Non-interest-earning assets		15,580							13,634
Total assets	$	273,881						$	245,258
Interest-bearing liabilities:
Savings accounts		6,736		10		0.28			6,544		29		0.89
NOW accounts		18,691		76		0.81			15,854		53		0.67
Money market accounts		41,278		96		0.47			35,787		117		0.65
Certificate accounts		107,316		968		1.81			91,869		1,050		2.29
Total deposits		174,021		1,150		1.32			150,054		1,249		1.66
FHLB advances		26,375		190		1.45			26,241		337		2.57
Total interest-bearing liabilities		200,396		1,340		1.34	%		176,295		1,586		1.80	%
Non-interest-bearing liabilities:
Non-interest bearing demand accounts		23,908							16,529
Other liabilities		1,589							1,720
Total liabilities		225,893							194,544
Total Stockholders’ Equity(1)		47,988							50,714
Total liabilities and equity	$	273,881						$	245,258
Net interest-earning assets	$	57,905						$	55,329
Net interest income; average interest rate spread(2)			$	5,298		3.80	%			$	4,513		3.47	%
Net interest margin(3)						4.10	%						3.90	%
Average interest-earning assets to average   interest-bearing liabilities						128.90	%						131.38	%

__________________

(1) Includes retained earnings and accumulated other comprehensive loss.

(2) Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average rate on interest-bearing liabilities.

(3) Net interest margin is net interest income divided by net average interest-earning assets.

Liquidity and Capital Resources

Home Federal Bank maintains levels of liquid assets deemed adequate by management.  The Bank adjusts its liquidity levels to fund deposit outflows, repay its borrowings and to fund loan commitments.  Home Federal Bank also adjusts liquidity as appropriate to meet asset and liability management objectives.

Home Federal Bank’s primary sources of funds are deposits, amortization and prepayment of loans and mortgage-backed securities, maturities of investment securities and other short-term investments, loan sales and earnings and funds provided from operations.  While scheduled principal repayments on loans and mortgage-backed securities are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition.  The Bank sets the interest rates on its deposits to maintain a desired level of total deposits.  In addition, Home Federal Bank invests excess funds in short-term interest-earning accounts and other assets, which provide liquidity to meet lending requirements.  Home Federal Bank’s deposit accounts with the Federal Home Loan Bank of Dallas amounted to $1.1 million at December 31, 2012.

29

HOME FEDERAL BANCORP, INC. OF LOUISIANA

Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2012 and 2011 (continued)

A significant portion of Home Federal Bank’s liquidity consists of securities classified as available-for-sale and cash and cash equivalents.   Home Federal Bank’s primary sources of cash are net income, principal repayments on loans and mortgage-backed securities and increases in deposit accounts.  If Home Federal Bank requires funds beyond its ability to generate them internally, borrowing agreements exist with the Federal Home Loan Bank of Dallas which provides an additional source of funds.  At December 31, 2012, Home Federal Bank had $30.2 million in advances from the Federal Home Loan Bank of Dallas and had $115.4 million in additional borrowing capacity.  Additionally, at December 31, 2012, Home Federal Bank was a party to a Master Purchase Agreement with First National Bankers Bank whereby Home Federal Bank may purchase Federal Funds from First National Bankers Bank in an amount not to exceed $17.4 million. There were no amounts purchased under this agreement as of December 31, 2012.

At December 31, 2012, Home Federal Bank had outstanding loan commitments of $26.6 million to originate loans.  At December 31, 2012, certificates of deposit scheduled to mature in less than one year totaled $46.5 million.Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. In addition, the cost of such deposits could be significantly higher upon renewal in a rising interest rate environment.  Home Federal Bank intends to utilize its high levels of liquidity to fund its lending activities.  If additional funds are required to fund lending activities, Home Federal Bank intends to sell its securities classified as available-for-sale as needed.

Home Federal Bank is required to maintain regulatory capital sufficient to meet tangible, core and risk-based capital ratios of at least 1.5%, 3.0% and 8.0%, respectively.  At December 31, 2012, Home Federal Bank exceeded each of its capital requirements with ratios of 14.99 %, 14.99% and 26.21%, respectively.

Off-Balance Sheet Arrangements

At December 31, 2012, the Company did not have any off-balance sheet arrangements, as defined by Securities and Exchange Commission rules.

Impact of Inflation and Changing Prices

The financial statements and related financial data presented herein have been prepared in accordance with instructions to Form 10-Q, which require the measurement of financial position and operating results in terms of historical dollars, without considering changes in relative purchasing power over time due to inflation.

Unlike most industrial companies, virtually all of the Company’s assets and liabilities are monetary in nature.  As a result, interest rates generally have a more significant impact on a financial institution’s performance than does the effect of inflation.

Forward-Looking Statements

This Form 10-Q contains certain forward-looking statements and information relating to the Company that are based on the beliefs of management as well as assumptions made by and information currently available to management.  In addition, in those and other portions of this document, the words “anticipate,” “believe,” “estimate,” “except,” “intend,” “should” and similar expressions, or the negative thereof, as they relate to the Company or the Company’s management, are intended to identify forward-looking statements.  Such statements reflect the current views of the Company with respect to future looking events and are subject to certain risks, uncertainties and assumptions.  Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary from those described herein as anticipated, believed, estimated, expected or intended.  The Company does not intend to update these forward-looking statements.

30

HOME FEDERAL BANCORP, INC. OF LOUISIANA

ITEM 3.                      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 Not applicable.

ITEM 4.                      CONTROLS AND PROCEDURES

 Evaluation of Disclosures Controls and Procedures.   Under the supervision and with the participation of our management, including our Chief Executive Officer and our President and Chief Operating Officer (together, the co-principal executive officers) and our Chief Financial Officer (principal financial officer), we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer, the President and Chief Operating Officer and the Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the applicable time periods specified by the Securities and Exchange Commission’s rules and forms.

 Changes in Internal Control over Financial Reporting.  There has been no change in the Company’s internal control over financial reporting during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II

ITEM 1.                      LEGAL PROCEEDINGS

The Company is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business, which involve amounts in the aggregate believed by management to be immaterial to the financial condition of the Company.

ITEM 1A.                   RISK FACTORS

 Not applicable.

ITEM 2.                      UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) Not applicable.

(b) Not applicable.

(c) Purchases of Equity Securities

The Company’s repurchases of its common stock made during the quarter ended December 31, 2012 are set forth in the table below:

Period	Total Number of Shares Purchased		Average  Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (a)
October 1, 2012 – October 31, 2012		34,900	$	17.62		34,900		238,740
November 1, 2012 – November 30, 2012		156,523		17.67		156,523		82,217
December 1, 2012 – December 31, 2012		48,481		17.46		48,481		33,736
Total		239,904	$	17.62		239,904		33,736

______________

Notes to this table:

(a) On September 14, 2012, the Company announced by press release a repurchase program to repurchase up to 275,000 shares, or approximately 10.0% of the Company’s outstanding shares of common stock. The repurchase program does not have an expiration date.

31

HOME FEDERAL BANCORP, INC. OF LOUISIANA

ITEM 3.                      DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4.                      MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.                      OTHER INFORMATION

Not applicable.

ITEM 6.                      EXHIBITS

The following Exhibits are filed as part of this report:

No.	Description
10.1	Amended and Restated Employment Agreement between Home Federal Bank and James R. Barlow, dated as of
	December 27, 2012(1)
10.2	Employment Agreement between Home Federal Bancorp, Inc. of Louisiana and James R. Barlow, dated as of December
	27, 2012(1)
10.3	Amended and Restated Employment and Transition Agreement between Home Federal Bank and Daniel R. Herndon,
	dated as of December 27, 2012(1)
10.4	Amended and Restated Employment and Transition Agreement between Home Federal Bancorp, Inc. of Louisiana and
	Daniel R. Herndon, dated as of December 27, 2012(1)
10.5	Employment and Transition Agreement between Home Federal Bancorp, Inc. of Louisiana, Home Federal Bank and
	Clyde D. Patterson, dated as of December 27, 2012(1)
10.6	Supplemental Executive Retirement Agreement between Home Federal Bank and Daniel R. Herndon, dated as of
	December 27, 2012(1)
10.7	Supplemental Executive Retirement Agreement between Home Federal Bank and Clyde D. Patterson, dated as of
	December 27, 2012(1)
31.1	Rule 13a-14(a)/15d-14(a) Certification of Co-Principal Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Co-Principal Executive Officer
31.3	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.0	Certification Pursuant to 18 U.S.C Section 1350

 _____________________

 (1) Incorporated by reference from the like-numbered exhibits included in the registrant’s Form 8-K filed with the SEC on December 28, 2012 (File No. 001-35019).

The following Exhibits are being furnished as part of this report:

	No.	Description
101.INS		XBRL Instance Document.*
101.SCH		XBRL Taxonomy Extension Schema Document.*
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document.*
101.LAB		XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document.*
101.DEF		XBRL Taxonomy Extension Definitions Linkbase Document.*

  ______________________

* These interactive data files are being furnished as part of this Quarterly Report, and, in accordance with Rule 402 of Regulation S-T, shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

32

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HOME FEDERAL BANCORP, INC. OF LOUISIANA
Date:   February 12, 2013	By:	/s/Clyde D. Patterson
		Clyde D. Patterson
		Executive Vice President and Chief Financial Officer
		(Duly authorized officer and principal financial and accounting officer)

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Daniel R. Herndon, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home Federal Bancorp, Inc. of Louisiana;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a)      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)      Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)      Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 12, 2013

/s/Daniel R. Herndon

Daniel R. Herndon

Chief Executive Officer

(Co-Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, James R. Barlow, President and Chief Operating Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home Federal Bancorp, Inc. of Louisiana;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a)      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)      Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)      Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 12, 2013

/s/James R. Barlow

James R. Barlow

President and Chief Operating Officer

(Co-Principal Executive Officer)

EX-31.3

EXHIBIT 31.3

CERTIFICATIONS

I, Clyde D. Patterson, Executive Vice President and Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home Federal Bancorp, Inc. of Louisiana;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a)      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)      Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)      Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  February 12, 2013

/s/Clyde D. Patterson

Clyde D. Patterson

Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32.0

EXHIBIT 32.0

SECTION 1350 CERTIFICATIONS

The undersigned executive officers of Home Federal Bancorp, Inc. of Louisiana (the "Registrant") hereby certify that the Registrant's Form 10-Q for the quarter ended December 31, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: February 12, 2013	/s/Daniel R. Herndon
	Name:	Daniel R. Herndon
	Title:	Chief Executive Officer
		(Co-Principal Executive Officer)

Date: February 12, 2013	/s/James R. Barlow
	Name:	James R. Barlow
	Title:	President and Chief Operating Officer
		(Co-Principal Executive Officer)

Date: February 12, 2013	/s/Clyde D. Patterson
	Name:	Clyde D. Patterson
	Title:	Executive Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act has been provided to Home Federal Bancorp, Inc. of Louisiana and will be retained by Home Federal Bancorp, Inc. of Louisiana and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Related Party Transactions (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Related Party Transactions [Abstract]
Loan made to directors and executive officers	$ 2.2	$ 1.9

XML

Loans Receivable (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012
Loan receivable [Abstract]
Gross Loans Receivable	$ 187,480	$ 141,838	$ 170,341
Less: Allowance for Loan Losses	(1,925)	(1,116)
Unamortized Loan Fees	(291)		(380)
Net Loans Receivable	185,264		168,263
Summary of changes in the allowance for loan losses [Roll Forward]
Balance - Beginning of Period	1,698	842
Provision for Loan Losses	227	274
Loan Charge-Offs	0	0
Balance - End of Period	1,925	1,116
Mortgage Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	172,935		157,517
Commercial Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	14,107		12,369
Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	438		455
One-to-Four Family Residential [Member]
Loan receivable [Abstract]
Gross Loans Receivable	63,608		59,410
Commercial [Member]
Loan receivable [Abstract]
Gross Loans Receivable	49,781	34,228	39,230
Multi-Family Residential [Member]
Loan receivable [Abstract]
Gross Loans Receivable	19,681	13,006	12,919
Land [Member]
Loan receivable [Abstract]
Gross Loans Receivable	15,022	11,738	12,317
Construction [Member]
Loan receivable [Abstract]
Gross Loans Receivable	13,403	13,060	22,660
Equity and Second Mortgage [Member]
Loan receivable [Abstract]
Gross Loans Receivable	2,401		2,520
Equity Lines of Credit [Member]
Loan receivable [Abstract]
Gross Loans Receivable	9,039		8,461
Loans on Savings Accounts [Member] | Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	269		227
Automobile and Other Consumer Loans [Member] | Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	$ 169		$ 228

XML

Summary of Accounting Policies

6 Months Ended

Dec. 31, 2012

Summary of Accounting Policies [Abstract]

Summary of Accounting Policies

1.           Summary of Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the "Company") and its subsidiary, Home Federal Bank ("Home Federal Bank" or the "Bank").  These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the six month period ended December 31, 2012, is not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2013.

The Company follows accounting standards set by the Financial Accounting Standards Board (the "FASB"). The FASB sets generally accepted accounting principles ("GAAP") that we follow to ensure we consistently report our financial condition, results of operations and cash flows.  References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (the "Codification" or the "ASC").

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of December 31, 2012.  In preparing these financial statements, the Company evaluated the events and transactions that occurred through the date these financial statements were issued.

Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses.

Nature of Operations

Home Federal Bancorp, Inc. of Louisiana, a Louisiana corporation, is the fully public stock holding company for Home Federal Bank located in Shreveport, Louisiana.  The Bank is a federally chartered, stock savings and loan association and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.  The Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. Services are provided to the Bank's customers by four full-service banking offices and one agency office, located in Caddo and Bossier Parishes, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of December 31, 2012, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which is currently inactive.

Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.

Securities

The Company classifies its debt and equity investment securities into one of three categories:  held-to-maturity, available-for-sale, or trading.  Investments in nonmarketable equity securities and debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at amortized cost.  Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.  Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities.  Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale.

Trading account and available-for-sale securities are carried at fair value.  Unrealized holding gains and losses on trading securities are included in earnings while net unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income.  Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities.  Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Loans Held-for-Sale

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate.  Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.

Loans

Loans receivable are stated at unpaid principal balances, less allowances for loan losses and unamortized deferred loan fees.  Net nonrefundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment of yield on the related interest earning assets using the interest method.  Interest income on contractual loans receivable is recognized on the accrual method.  Unearned discount on property improvement and automobile loans is deferred and amortized on the interest method over the life of the loan.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings.  Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management's periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of the underlying collateral and prevailing economic conditions.  The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

A loan is considered impaired when, based on current information or events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement.  When a loan is impaired, the measurement of such impairment is based upon the present value of expected future cash flows or the fair value of the collateral of the loan.  If the present value of expected future cash flows or fair value of the collateral is less than the recorded investment in the loan, the Bank will recognize the impairment by creating a valuation allowance with a corresponding charge against earnings.

An allowance is also established for uncollectible interest on loans classified as substandard.  The allowance is established by a charge to interest income equal to all interest previously accrued and income is subsequently recognized only to the extent that cash payments are received.  When, in management's judgment, the borrower's ability to make periodic interest and principal payments is back to normal, the loan is returned to accrual status.

It should be understood that estimates of future loan losses involve an exercise of judgment.  While it is possible that in particular periods the Company may sustain losses which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses reflected in the accompanying statements of condition is adequate to absorb possible losses in the existing loan portfolio.

Off-Balance Sheet Credit Related Financial Instruments

In the ordinary course of business, the Bank has entered into commitments to extend credit.  Such financial instruments are recorded when they are funded.

Foreclosed Assets

Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and are transferred to other real estate owned at the lower of cost or current fair value minus estimated cost to sell as of the date of foreclosure.  Cost is defined as the lower of the fair value of the property or the recorded investment in the loan.  Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell.

Premises and Equipment

Land is carried at cost.  Buildings and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets.

Income Taxes

The Company and its wholly-owned subsidiary file a consolidated Federal income tax return on a fiscal year basis.  Each entity pays its pro-rata share of income taxes in accordance with a written tax-sharing agreement.

The Company accounts for income taxes on the asset and liability method.  Deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates.  A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.  Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized.  Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of taxes receivable or payable.

While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders' equity and net income.

Comprehensive Income

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the Consolidated Statements of Financial Condition, such items, along with net income, are components of comprehensive income.

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Loans Receivable, Loans Individually Evaluated for Impairment (Details) (USD $)	6 Months Ended	12 Months Ended
	Dec. 31, 2012	Jun. 30, 2012
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	$ 335,000	$ 14,000
Recorded Investment With No Allowance	335,000	14,000
Recorded Investment With Allowance	0	0
Total Recorded Investment	335,000	14,000
Related Allowance	0	0
Average Recorded Investment	347,000	14,000
Loan Receivables on Nonaccrual Status, Total	378,000	14,000
Real Estate Loans - One-to-Four Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	335,000	14,000
Recorded Investment With No Allowance	335,000	14,000
Recorded Investment With Allowance	0	0
Total Recorded Investment	335,000	14,000
Related Allowance	0	0
Average Recorded Investment	347,000	14,000
Multi-Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Land [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Commercial [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Construction [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Equity and Second Mortgage [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Equity Lines of Credit [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Commercial Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Consumer Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	$ 0	$ 0

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Loans Receivable, Allowance for Loan Losses and Recorded Investment in Loans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012
Allowance for loan losses [Abstract]
Beginning Balances			$ 1,698	$ 842	$ 842
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision	116	188	227	274	856
Ending Balances	1,925	1,116	1,925	1,116	1,698
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	1,925	1,116	1,925	1,116	1,698
Loans Receivable [Abstract]
Ending Balances - Total	187,480	141,838	187,480	141,838	170,341
Evaluated for Impairment, Ending Balances [Abstract]
Individually	335	217	335	217	14
Collectively	187,145	141,621	187,145	141,621	170,327
Real Estate Loans - Residential [Member]
Allowance for loan losses [Abstract]
Beginning Balances			416	110	110
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			594	115	306
Ending Balances	1,010	225	1,010	225	416
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	1,010	225	1,010	225	416
Loans Receivable [Abstract]
Ending Balances - Total	63,608	48,828	63,608	48,828	59,410
Evaluated for Impairment, Ending Balances [Abstract]
Individually	335	217	335	217	14
Collectively	63,273	48,611	63,273	48,611	59,396
Real Estate Loans - Commercial [Member]
Allowance for loan losses [Abstract]
Beginning Balances			185	125	125
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			135	(65)	60
Ending Balances	320	60	320	60	185
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	320	60	320	60	185
Loans Receivable [Abstract]
Ending Balances - Total	49,781	34,228	49,781	34,228	39,230
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	49,781	34,228	49,781	34,228	39,230
Real Estate Loans - Multi Family [Member]
Allowance for loan losses [Abstract]
Beginning Balances			205	140	140
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			(108)	(37)	65
Ending Balances	97	103	97	103	205
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	97	103	97	103	205
Loans Receivable [Abstract]
Ending Balances - Total	19,681	13,006	19,681	13,006	12,919
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	19,681	13,006	19,681	13,006	12,919
Real Estate Loans - Land [Member]
Allowance for loan losses [Abstract]
Beginning Balances			270	150	150
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			(117)	230	120
Ending Balances	153	380	153	380	270
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	153	380	153	380	270
Loans Receivable [Abstract]
Ending Balances - Total	15,022	11,738	15,022	11,738	12,317
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	15,022	11,738	15,022	11,738	12,317
Real Estate Loans - Construction [Member]
Allowance for loan losses [Abstract]
Beginning Balances			311	130	130
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			(149)	(14)	181
Ending Balances	162	116	162	116	311
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	162	116	162	116	311
Loans Receivable [Abstract]
Ending Balances - Total	13,403	13,060	13,403	13,060	22,660
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	13,403	13,060	13,403	13,060	22,660
Real Estate Loans - Other [Member]
Allowance for loan losses [Abstract]
Beginning Balances			0	0	0
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			0	0	0
Ending Balances	0	0	0	0	0
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	0	0	0	0	0
Loans Receivable [Abstract]
Ending Balances - Total	11,440	7,647	11,440	7,647	10,981
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	11,440	7,647	11,440	7,647	10,981
Commercial Loans [Member]
Allowance for loan losses [Abstract]
Beginning Balances			281	175	175
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			(127)	48	106
Ending Balances	154	223	154	223	281
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	154	223	154	223	281
Loans Receivable [Abstract]
Ending Balances - Total	14,107	12,859	14,107	12,859	12,369
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	14,107	12,859	14,107	12,859	12,369
Consumer Loans [Member]
Allowance for loan losses [Abstract]
Beginning Balances			30	12	12
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			(1)	(3)	18
Ending Balances	29	9	29	9	30
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	29	9	29	9	30
Loans Receivable [Abstract]
Ending Balances - Total	438	472	438	472	455
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	$ 438	$ 472	$ 438	$ 472	$ 455

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Deposits (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Summary of Deposits [Abstract]
Non-Interest Bearing	$ 26,803	$ 20,575
NOW Accounts	19,071	16,887
Money Market	37,383	68,446
Passbook Savings	5,960	6,893
Total transaction accounts	89,217	112,801
Certificates of Deposit	106,941	108,635
Total Deposits	$ 196,158	$ 221,436

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Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2012	Jun. 30, 2011
Calculation of earnings per share [Abstract]
Net income	$ 881	$ 680	$ 1,819	$ 1,482
Weighted average shares outstanding, Basic (in shares)	2,420,591	2,865,535	2,507,336	2,862,055
Effect of dilutive common stock equivalents (in shares)	67,839	33,408	67,797	30,719
Adjusted weighted average shares outstanding- diluted (in shares)	2,488,430	2,898,943	2,575,133	2,892,774
Basic earnings per share (in dollars per share)	$ 0.36	$ 0.24	$ 0.73	$ 0.52
Diluted earnings per share (in dollars per share)	$ 0.35	$ 0.23	$ 0.71	$ 0.51
Outstanding options to purchase shares (in shares)	287,540	152,816	287,540	152,816	304,007	154,856
Per share price of outstanding options (in dollars per share)	$ 13.44	$ 13.31	$ 13.44	$ 13.31
Components of average outstanding common shares [Abstract]
Average common shares issued (in shares)	3,062,386	3,051,881	3,062,386	3,049,842
Average unearned ESOP shares (in shares)	(174,815)	(186,346)	(176,256)	(187,787)
Average unearned RRP shares (in shares)	(77,808)	0	(77,808)	0
Average treasury shares (in shares)	(389,172)	0	(300,986)	0
Weighted average shares outstanding (in shares)	2,420,591	2,865,535	2,507,336	2,862,055

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 1,819	$ 1,482
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities
Net Amortization and Accretion on Securities	(8)	(41)
Gain on Sale of Securities	(215)	(254)
Gain on Sale of Loans	(1,336)	(1,091)
Amortization of Deferred Loan Fees	(153)	(307)
Depreciation of Premises and Equipment	102	108
ESOP Expense	98	77
Stock Option Expense	83	5
Recognition and Retention Plan Expense	105	3
Deferred Income Tax	(54)	(121)
Provision for Loan Losses	227	274
Changes in Assets and Liabilities:
Loans Held-for-Sale - Originations and Purchases	(61,530)	(61,309)
Loans Held-for-Sale - Sale and Principal Repayments	65,647	56,455
Accrued Interest Receivable	24	25
Other Operating Assets	277	52
Other Operating Liabilities	(446)	(251)
Net Cash Provided by (Used in) Operating Activities	4,640	(4,893)
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections	(17,139)	(15,348)
Deferred Loan Fees Collected	64	467
Acquisition of Premises and Equipment	(726)	(1,106)
Activity in Available-for-Sale Securities:
Proceeds from Sales of Securities	33,347	39,912
Principal Payments on Mortgage-Backed Securities	7,246	7,238
Purchases of Securities	(31,515)	(48,095)
Activity in Held-to-Maturity Securities:
Redemption Proceeds	107	0
Principal Payments on Mortgage-Backed Securities	0	525
Purchases of Securities	(359)	(71)
Increase in Cash Surrender Value on Bank Owned Life Insurance	(97)	(108)
Net Cash Used in Investing Activities	(9,072)	(16,586)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	(25,278)	19,845
Proceeds from Federal Home Loan Bank Advances	83,500	16,500
Repayments of Advances from Federal Home Loan Bank	(76,726)	(17,780)
Net Decrease in Advances from Borrowers for Taxes and Insurance	(151)	(127)
Dividends Paid	(339)	(365)
Acquisition of Treasury Stock	(6,416)	0
Proceeds from Stock Options Exercised	454	66
Proceeds from Other Bank Borrowings	1,000	0
Repayment of Other Bank Borrowings	(1,000)	0
Net Cash (Used In) Provided by Financing Activities	(24,956)	18,139
NET DECREASE IN CASH AND CASH EQUIVALENTS	(29,388)	(3,340)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	34,863	9,599
CASH AND CASH EQUIVALENTS - END OF PERIOD	5,475	6,259
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	1,354	1,605
Income Taxes Paid	1,008	656
Market Value Adjustment for Gain on Securities Available-for-Sale	(533)	(227)
Acquisition of Treasury Stock with Stock Issuance	$ 143	$ 0

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Stock-Based Compensation (Details) (USD $)	6 Months Ended
	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding stock option under the plan (in shares)	287,540	304,007	152,816	154,856
Expected Term	10 years
Incentive stock options and non-qualified stock options, vested and exercisable (in hundredths)	20.00%
Period of incentive stock options and non-qualified stock options, vested and exercisable	5 years
Commencement period of incentive and non-qualified options	1 year
Additional percentage vested on each successive anniversary (in hundredths)	20.00%
2005 Recognition and Retention Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock (in shares)	63,547
Exchange ratio of common stock	0.9110
Number of released vested share (in shares)	561
Remained vested share under the plan (in shares)	1,686
2011 Recognition and Retention Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock (in shares)	77,808
Number of shares awarded under the plan (in shares)	69,251
Recognition Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares earned by recipients expressed in percentage of aggregate number of shares (in hundredths)	20.00%
Period of plan	5 years
Period of cost recognized	5 years
Compensation expense	105,000
2005 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock (in shares)	2,133
Aggregate number of shares of common stock reserved for issuance (in shares)	158,868
Outstanding stock option under the plan (in shares)	104,566
2011 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock (in shares)	25,287
Aggregate number of shares of common stock reserved for issuance (in shares)	194,522
Outstanding stock option under the plan (in shares)	169,235

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $1,071 and $31,486 for December 31, 2012 and June 30, 2012, Respectively)	$ 5,475	$ 34,863
Securities Available-for-Sale	59,038	68,426
Securities Held-to-Maturity	1,633	1,381
Loans Held-for-Sale	8,377	11,157
Loans Receivable, Net of Allowance for Loan Losses of $1,925 and $1,698, Respectively	185,264	168,263
Accrued Interest Receivable	803	826
Premises and Equipment, Net	5,496	4,872
Bank Owned Life Insurance	5,940	5,844
Other Assets	275	551
Deferred Tax Asset	199	0
Total Assets	272,500	296,183
LIABILITIES
Deposits	196,158	221,436
Advances from Borrowers for Taxes and Insurance	106	256
Advances from Federal Home Loan Bank of Dallas	30,243	23,469
Other Accrued Expenses and Liabilities	747	1,098
Deferred Tax Liability	0	36
Total Liabilities	227,254	246,295
STOCKHOLDERS' EQUITY
Preferred Stock - 10,000,000 Shares of $.01 Par Value Authorized; None Issued and Outstanding	0	0
Common Stock - 40,000,000 Shares of $.01 Par Value Authorized; 3,062,386 Shares Issued and 2,556,829 Shares Outstanding at December 31, 2012; 2,877,032 Shares Outstanding at June 30, 2012	32	32
Additional Paid-in Capital	31,919	31,199
Treasury Stock, at Cost - 505,557 shares at December 31, 2012; 185,354 at June 30, 2012	(9,264)	(2,706)
Unearned ESOP Stock	(1,734)	(1,792)
Unearned RRP Trust Stock	(1,105)	(1,114)
Retained Earnings	24,377	22,897
Accumulated Other Comprehensive Income	1,021	1,372
Total Stockholders' Equity	45,246	49,888
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 272,500	$ 296,183

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements of Comprehensive Income [Abstract]
Tax on unrealized holding gain on securities available-for-sale	$ 158	$ 106	$ 242	$ 20
Tax on reclassification adjustment gain included in Net Income	$ 47	$ 75	$ 37	$ 98

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Fair Value Disclosures, Recurring and Nonrecurring (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
Available for sale debt securities [Abstract]
Government Agency Notes Fair Value Disclosure	$ 1,294
Available for sale equity securities [Abstract]
Available-for-Sale Securities	59,038	68,426
Recurring [Member]
Available for sale debt securities [Abstract]
FHLMC Mortgage Backed Certificates Fair Value Disclosure	544	668
FNMA Mortgage Backed Certificates Fair Value Disclosure	17,643	22,974
GNMA Mortgage Backed Certificates Fair Value Disclosure	39,557	43,482
Available for sale equity securities [Abstract]
ARM Fund Fair Value Disclosure	1,294	1,302
Available-for-Sale Securities	59,038	68,426
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available for sale debt securities [Abstract]
FHLMC Mortgage Backed Certificates Fair Value Disclosure	0	0
FNMA Mortgage Backed Certificates Fair Value Disclosure	0	0
GNMA Mortgage Backed Certificates Fair Value Disclosure	0	0
Available for sale equity securities [Abstract]
ARM Fund Fair Value Disclosure	1,294	1,302
Available-for-Sale Securities		1,302
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Available for sale debt securities [Abstract]
FHLMC Mortgage Backed Certificates Fair Value Disclosure	544	668
FNMA Mortgage Backed Certificates Fair Value Disclosure	17,643	22,974
GNMA Mortgage Backed Certificates Fair Value Disclosure	39,557	43,482
Available for sale equity securities [Abstract]
ARM Fund Fair Value Disclosure	0	0
Available-for-Sale Securities	$ 57,744	$ 67,124

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Fair Value Disclosures (Tables)

6 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Carrying amount and estimated fair values of financial instruments

The carrying amount and estimated fair values of the Company's financial instruments were as follows:

	December 31, 2012				June 30, 2012
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	5,475	$	5,475	$	34,863	$	34,863
Securities Available-for-Sale		59,038		59,038		68,426		68,426
Securities to be Held-to-Maturity		1,633		1,633		1,381		1,381
Loans Held-for-Sale		8,377		8,377		11,157		11,157
Loans Receivable		185,264		187,383		168,263		170,138
Financial Liabilities
Deposits		196,158		198,449		221,436		225,651
Advances from FHLB		30,243		30,933		23,469		24,097
Off-Balance Sheet Items
Mortgage Loan Commitments		266		266		237		237

Fair values of assets and liabilities measured on a recurring basis

Fair values of assets and liabilities measured on a recurring basis at December 31, 2012 and June 30, 2012 are as follows:

	Fair Value Measurements Using:
December 31, 2012	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	544	$	544
FNMA Mortgage-Backed Certificates		--		17,643		17,643
GNMA Mortgage-Backed Certificates		--		39,557		39,557
Equity Securities
ARM Fund		1,294		--		1,294
Total	$	1,294	$	57,744	$	59,038

	Fair Value Measurements Using:
June 30, 2012	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	668	$	668
FBNA Mortgage-Backed Certificates		--		22,974		22,974
GNMA Mortgage-Backed Certificates		--		43,482		43,482
Equity Securities
ARM Fund		1,302		--		1,302
Total	$	1,302	$	67,124	$	68,426

XML

Securities (Details) (USD $)	6 Months Ended
	Dec. 31, 2012	Jun. 30, 2012
Securities Available-for-Sale [Abstract]
Amortized Cost	$ 57,492,000	$ 66,347,000
Gross Unrealized Gains	1,662,000	2,079,000
Gross Unrealized Losses	116,000	0
Available-for-Sale Securities	59,038,000	68,426,000
Securities Held-to-Maturity [Abstract]
Amortized Cost	1,633,000	1,381,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,633,000	1,381,000
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	166,000
After Five through Ten Years	505,000
Over Ten Years	55,530,000
Total	56,201,000
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	171,000
After Five through Ten Years	524,000
Over Ten Years	57,049,000
Total	57,744,000
Held-to-Maturity, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	0
Over Ten Years	0
Total	0
Held-to-Maturity, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	0
Over Ten Years	0
Total	0
Proceeds from sale of securities available-for-sale	33,300,000
Gross realized gains	215,000
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	116,000
Over Twelve Months	0
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	30,922,000
Over Twelve Months	0
Public deposits [Member]
Securities Available-for-sale Securities, Fair Value [Abstract]
Securities pledged with carrying value	3,400,000
FHLB advances [Member]
Securities Available-for-sale Securities, Fair Value [Abstract]
Securities pledged with carrying value	94,600,000
Available-for-Sale Debt Securities [Member]
Securities Available-for-Sale [Abstract]
Amortized Cost	56,201,000	65,056,000
Gross Unrealized Gains	1,659,000	2,068,000
Gross Unrealized Losses	116,000	0
Available-for-Sale Securities	57,744,000	67,124,000
Available-for-Sale Debt Securities [Member] | FHLMC Mortgage-Backed Certificates [Member]
Securities Available-for-Sale [Abstract]
Amortized Cost	518,000	635,000
Gross Unrealized Gains	26,000	33,000
Gross Unrealized Losses	0	0
Available-for-Sale Securities	544,000	668,000
Available-for-Sale Debt Securities [Member] | FNMA Mortgage-Backed Certificates [Member]
Securities Available-for-Sale [Abstract]
Amortized Cost	16,172,000	21,099,000
Gross Unrealized Gains	1,471,000	1,875,000
Gross Unrealized Losses	0	0
Available-for-Sale Securities	17,643,000	22,974,000
Available-for-Sale Debt Securities [Member] | GNMA Mortgage-Backed Certificates [Member]
Securities Available-for-Sale [Abstract]
Amortized Cost	39,511,000	43,322,000
Gross Unrealized Gains	162,000	160,000
Gross Unrealized Losses	116,000	0
Available-for-Sale Securities	39,557,000	43,482,000
Available-for-Sale Debt Securities [Member] | Mortgage-Backed Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	116,000
Over Twelve Months	0
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	30,922,000
Over Twelve Months	0
Marketable Equity Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	0
Over Twelve Months	0
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	0
Over Twelve Months	0
Marketable Equity Securities [Member] | AMF ARM Fund [Member]
Securities Available-for-Sale [Abstract]
Amortized Cost	1,291,000	1,291,000
Gross Unrealized Gains	3,000	11,000
Gross Unrealized Losses	0	0
Available-for-Sale Securities	1,294,000	1,302,000
Securities Held-to-Maturity [Abstract]
Number of shares covered under equity securities (in shares)	176,612	176,612
Non-Marketable Equity Securities [Member]
Securities Held-to-Maturity [Abstract]
Amortized Cost	1,633,000	1,381,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,633,000	1,381,000
Non-Marketable Equity Securities [Member] | Federal Home Loan Bank [Member]
Securities Held-to-Maturity [Abstract]
Amortized Cost	1,383,000	1,131,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,383,000	1,131,000
Number of shares covered under equity securities (in shares)	13,831	11,307
Non-Marketable Equity Securities [Member] | First National Bankers Bankshares, Inc. [Member]
Securities Held-to-Maturity [Abstract]
Amortized Cost	250,000	250,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 250,000	$ 250,000
Number of shares covered under equity securities (in shares)	630	630

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (USD $) In Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Unearned ESOP Stock [Member]	Unearned RRP Trust Stock [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning Balance at Jun. 30, 2011	$ 32	$ 30,880	$ (1,907)	$ (29)	$ 20,781	$ 0	$ 1,426	$ 51,183
Net Income					1,482			1,482
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects							(150)	(150)
RRP Shares Earned				8				8
Stock Options Vested		5						5
Common Stock Issuance for Stock Option Exercises		66						66
ESOP Compensation Earned		18	58					76
Dividends Declared					(365)			(365)
Ending Balance at Dec. 31, 2011	32	30,969	(1,849)	(21)	21,898	0	1,276	52,305
Beginning Balance at Jun. 30, 2012	32	31,199	(1,792)	(1,114)	22,897	(2,706)	1,372	49,888
Net Income					1,819			1,819
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects							(351)	(351)
RRP Shares Earned				9				9
Stock Options Vested		83						83
Common Stock Issuance for Stock Option Exercises		597						597
ESOP Compensation Earned		40	58					98
Acquisition of Treasury Stock						(6,558)		(6,558)
Dividends Declared					(339)			(339)
Ending Balance at Dec. 31, 2012	$ 32	$ 31,919	$ (1,734)	$ (1,105)	$ 24,377	$ (9,264)	$ 1,021	$ 45,246

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012
ASSETS
Interest-Bearing Deposits with Other Banks	$ 1,071	$ 31,486
Loans Receivable, Net of Allowance for Loan Losses	$ 1,925	$ 1,698
STOCKHOLDERS' EQUITY
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, authorized (in shares)	10,000,000	10,000,000
Preferred Stock, issued (in shares)	0	0
Preferred Stock, outstanding (in shares)	0	0
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, authorized (in shares)	40,000,000	40,000,000
Common Stock, issued (in shares)	3,062,386	3,062,386
Common Stock, outstanding (in shares)	2,556,829	2,877,032
Treasury Stock (in shares)	505,557	185,354

XML

Summary of Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2012

Summary of Accounting Policies [Abstract]

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.

Securities

Securities

The Company classifies its debt and equity investment securities into one of three categories:  held-to-maturity, available-for-sale, or trading.  Investments in nonmarketable equity securities and debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at amortized cost.  Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.  Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities.  Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale.

Trading account and available-for-sale securities are carried at fair value.  Unrealized holding gains and losses on trading securities are included in earnings while net unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income.  Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities.  Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Premises and Equipment

Premises and Equipment

Land is carried at cost.  Buildings and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets.

Income Taxes

Income Taxes

The Company and its wholly-owned subsidiary file a consolidated Federal income tax return on a fiscal year basis.  Each entity pays its pro-rata share of income taxes in accordance with a written tax-sharing agreement.

The Company accounts for income taxes on the asset and liability method.  Deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates.  A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.  Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized.  Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of taxes receivable or payable.

While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders' equity and net income.

Comprehensive Income

Comprehensive Income

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the Consolidated Statements of Financial Condition, such items, along with net income, are components of comprehensive income.

XML

Document and Entity Information	6 Months Ended
	Dec. 31, 2012	Feb. 08, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	Home Federal Bancorp, Inc. of Louisiana
Entity Central Index Key	0001500375
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,352,820
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2012

XML

Securities (Tables)

6 Months Ended

Dec. 31, 2012

Securities [Abstract ]

Amortized cost and fair value of securities, with gross unrealized gains and losses

The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:

	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	518	$	26	$	--	$	544
FNMA Mortgage-Backed Certificates		16,172		1,471		--		17,643
GNMA Mortgage-Backed Certificates		39,511		162		116		39,557
Total Debt Securities		56,201		1,659		116		57,744
Equity Securities
176,612 Shares, AMF ARM Fund		1,291		3		--		1,294
Total Securities Available-for-Sale	$	57,492	$	1,662	$	116	$	59,038
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
13,831 Shares – Federal Home Loan Bank		1,383		--		--		1,383
630 Shares – First National Bankers  Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,633		--		--		1,633
Total Securities Held-to-Maturity	$	1,633	$	--	$	--	$	1,633

	June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	635	$	33	$	--	$	668
FNMA Mortgage-Backed Certificates		21,099		1,875		--		22,974
GNMA Mortgage-Backed Certificates		43,322		160		--		43,482
Total Debt Securities		65,056		2,068		--		67,124
Equity Securities
176,612 Shares, AMF ARM Fund		1,291		11		--		1,302
Total Securities Available-for-Sale	$	66,347	$	2,079	$	--	$	68,426
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
11,307 Shares – Federal Home Loan Bank		1,131		--		--		1,131
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,381		--		--		1,381
Total Securities Held-to-Maturity	$	1,381	$	--	$	--	$	1,381

Amortized cost and fair value of debt securities by contractual maturity

The amortized cost and fair value of debt securities by contractual maturity at December 31, 2012, follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Within One Year or Less	$	--	$	--	$	--	$	--
One through Five Years		166		171		--		--
After Five through Ten Years		505		524		--		--
Over Ten Years		55,530		57,049		--		--
Total	$	56,201	$	57,744	$	--	$	--

Information pertaining to securities with gross unrealized losses, continuous loss position

There were no unrealized losses on securities at June 30, 2012, and there were no unrealized losses on securities held-to-maturity at December 31, 2012.

	December 31, 2012
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale:
Debt Securities
Mortgage-Backed Securities	$	116	$	30,922	$	--	$	--
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	116	$	30,922	$	--	$	--

XML

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
INTEREST INCOME
Loans, Including Fees	$ 2,843	$ 2,507	$ 5,684	$ 4,769
Investment Securities	7	16	14	80
Mortgage-Backed Securities	447	700	932	1,242
Other Interest-Earning Assets	2	3	8	8
Total Interest Income	3,299	3,226	6,638	6,099
INTEREST EXPENSE
Deposits	557	628	1,150	1,249
Other Bank Borrowings	3	0	3	0
Federal Home Loan Bank Borrowings	87	161	187	337
Total Interest Expense	647	789	1,340	1,586
Net Interest Income	2,652	2,437	5,298	4,513
PROVISION FOR LOAN LOSSES	116	188	227	274
Net Interest Income after Provision for Loan Losses	2,536	2,249	5,071	4,239
NON-INTEREST INCOME
Gain on Sale of Loans	654	498	1,336	1,091
Gain on Sale of Investments	120	51	215	254
Income on Bank Owned Life Insurance	48	52	97	108
Other Income	97	101	203	192
Total Non-Interest Income	919	702	1,851	1,645
NON-INTEREST EXPENSE
Compensation and Benefits	1,347	1,205	2,664	2,326
Occupancy and Equipment	187	173	393	369
Data Processing	99	90	187	166
Audit and Examination Fees	58	65	106	115
Franchise and Bank Shares Tax	57	49	141	144
Advertising	60	76	120	136
Legal Fees	159	125	247	202
Loan and Collection	21	26	61	57
Deposit Insurance Premium	32	28	63	53
Other Expense	114	117	213	238
Total Non-Interest Expense	2,134	1,954	4,195	3,806
Income Before Income Taxes	1,321	997	2,727	2,078
PROVISION FOR INCOME TAX EXPENSE	440	317	908	596
Net Income	$ 881	$ 680	$ 1,819	$ 1,482
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 0.36	$ 0.24	$ 0.73	$ 0.52
Diluted (in dollars per share)	$ 0.35	$ 0.23	$ 0.71	$ 0.51
DIVIDENDS DECLARED (in dollars per share)	$ 0.06	$ 0.06	$ 0.12	$ 0.12

XML

Deposits

6 Months Ended

Dec. 31, 2012

Deposits [Abstract]

Deposits

4.           Deposits

Deposits at December 31, 3012 and June 30, 2012 consist of the following classifications:

	December 31, 2012		June 30, 2012
	(In Thousands)
Non-Interest Bearing	$	26,803	$	20,575
NOW Accounts		19,071		16,887
Money Markets		37,383		68,446
Passbook Savings		5,960		6,893
		89,217		112,801
Certificates of Deposit		106,941		108,635
Total Deposits	$	196,158	$	221,436

XML

Loans Receivable

6 Months Ended

Dec. 31, 2012

Loans Receivable [Abstract]

Loans Receivable

3.           Loans Receivable

Loans receivable are summarized as follows:

	December 31, 2012			June 30, 2012
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	63,608		$	59,410
Commercial		49,781			39,230
Multi-Family Residential		19,681			12,919
Land		15,022			12,317
Construction		13,403			22,660
Equity and Second Mortgage		2,401			2,520
Equity Lines of Credit		9,039			8,461
Total Mortgage Loans		172,935			157,517
Commercial Loans		14,107			12,369
Consumer Loans
Loans on Savings Accounts		269			227
Automobile and Other Consumer Loans		169			228
Total Consumer and Other Loans		438			455
Total Loans		187,480			170,341
Less:   Allowance for Loan Losses		(1,925	)		(1,698	)
Unamortized Loan Fees		(291	)		(380	)
Net Loans Receivable	$	185,264		$	168,263

Following is a summary of changes in the allowance for loan losses:

	Six Months Ended December 31,
	2012		2011
	(In Thousands)
Balance - Beginning of Period	$	1,698	$	842
Provision for Loan Losses		227		274
Loan Charge-Offs		--		--
Balance - End of Period	$	1,925	$	1,116

Credit Quality Indicators

The Company segregates loans into risk categories based on the pertinent information about the ability of borrowers to service their debt such as:  current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying the loans according to credit risk.  Loans classified as substandard or identified as special mention are reviewed quarterly by management to evaluate the level of deterioration, improvement, and impairment, if any, as well as assign the appropriate risk category.

Loans excluded from the scope of the quarterly review process above are generally identified as pass credits until:  (a) they become past due; (b) management becomes aware of deterioration in the credit worthiness of the borrower; or (c) the customer contacts the Company for a modification.  In these circumstances, the loan is specifically evaluated for potential classification and the need to allocate reserves or charge-off.  The Company uses the following definitions for risk ratings:

Special Mention - Loans identified as special mention have a potential weakness that deserves management's close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any.  Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss - This classification includes those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted.  Even though partial recovery may be possible in the future, it is not practical or desirable to defer writing off these basically worthless loans.  Accordingly, these loans are charged-off before period end.

The following tables present the grading of loans, segregated by class of loans, as of December 31, 2012 and June 30, 2012:

December 31, 2012			Special
	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	62,138	$	1,109	$	361	$	--	$	63,608
Commercial		49,781		--		--		--		49,781
Multi-Family Residential		19,681		--		--		--		19,681
Land		15,022		--		--		--		15,022
Construction		13,403		--		--		--		13,403
Equity and Second Mortgage		2,401		--		--		--		2,401
Equity Lines of Credit		8,907		--		132		--		9,039
Commercial Loans		14,107		--		--		--		14,107
Consumer Loans		438		--		--		--		438
Total	$	185,878	$	1,109	$	493	$	--	$	187,480

June 30, 2012	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	58,531	$	517	$	362	$	--	$	59,410
Commercial		39,230		--		--		--		39,230
Multi-Family Residential		12,919		--		--		--		12,919
Land		12,317		--		--		--		12,317
Construction		22,660		--		--		--		22,660
Equity and Second Mortgage		2,520		--		--		--		2,520
Equity Lines of Credit		8,345		27		89		--		8,461
Commercial Loans		12,369		--		--		--		12,369
Consumer Loans		455		--		--		--		455
Total	$	169,346	$	544	$	451	$	--	$	170,341

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when contractually due.  Loans that experience insignificant payment delays or payment shortfalls are generally not classified as impaired.  On a case-by-case basis, management determines the significance of payment delays and payment shortfalls, taking into consideration all of the circumstances related to the loan, including:  the length of the payment delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The following tables present an aging analysis of past due loans, segregated by class of loans, as of December 31, 2012 and June 30, 2012:

December 31, 3012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,675	$	507	$	1,444	$	3,626	$	59,982	$	63,608	$	1,109
Commercial		--		--		--		--		49,781		49,781		--
Multi-Family Residential		--		--		--		--		19,681		19,681		--
Land		--		--		--		--		15,022		15,022		--
Construction		--		--		--		--		13,403		13,403		--
Equity and Second Mortgage		--		--		--		--		2,401		2,401		--
Equity Lines of Credit				--		43		43		8,996		9,039		--
Commercial Loans		--		--		--		--		14,107		14,107		--
Consumer Loans		--		--		--		--		438		438		--
Total	$	1,675	$	507	$	1,487	$	3,669	$	183,811	$	187,480	$	1,109

June 30, 2012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,039	$	1,024	$	14	$	3,077	$	56,333	$	59,410	$	--
Commercial		--		--		--		--		39,230		39,230		--
Multi-Family Residential		--		--		--		--		12,919		12,919		--
Land		--		--		--		--		12,317		12,317		--
Construction		--		--		--		--		22,660		22,660		--
Equity and Second Mortgage		--		--		--		--		2,520		2,520		--
Equity Lines of Credit		--		--		--		--		8,461		8,461		--
Commercial Loans		--		--		--		--		12,369		12,369		--
Consumer Loans		--		--		--		--		455		455		--
Total	$	2,039	$	1,024	$	14	$	3,077	$	167,264	$	170,341	$	--

Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties are considered troubled debt restructurings and classified as impaired.  There were no troubled debt restructurings as of December 31, 2012 or June 30, 2012.

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the six months ended December 31, 2012 and the year ended June 30, 2012, was as follows:

	Real Estate Loans
December 31, 2012	Residential		Commercial		Multi- Family			Land			Construction			Other		Commercial Loans			Consumer Loans			Total
								(In Thousands)
Allowance for loan losses:
Beginning Balances	$	416	$	185	$	205		$	270		$	311		$	--	$	281		$	30		$	1,698
Charge-Offs		--		--		--			--			--			--		--			--			--
Recoveries		--		--		--			--			--			--		--			--			--
Current Provision		594		135		(108	)		(117	)		(149	)		--		(127	)		(1	)		227
Ending Balances	$	1,010	$	320	$	97		$	153		$	162		$	--	$	154		$	29		$	1,925
Evaluated for Impairment:
Individually		--		--		--			--			--			--		--			--			--
Collectively		1,010		320		97			153			162			--		154			29			1,925
Loans Receivable:
Ending Balances - Total	$	63,608	$	49,781	$	19,681		$	15,022		$	13,403		$	11,440	$	14,107		$	438		$	187,480
Ending Balances:
Evaluated for Impairment:
Individually		335		--		--			--			--			--		--			--			335
Collectively	$	63,273	$	49,781	$	19,681		$	15,022		$	13,403		$	11,440	$	14,107		$	438		$	187,145

	Real Estate Loans
June 30, 2012	Residential		Commercial		Multi-Family		Land		Construction		Other		Commercial Loans		Consumer Loans		Total
	(In Thousands)
Allowance for loan losses:
Beginning Balances	$	110	$	125	$	140	$	150	$	130	$	--	$	175	$	12	$	842
Charge-Offs		--		--		--		--		--		--		--		--		--
Recoveries		--		--		--		--		--		--		--		--		--
Current Provision		306		60		65		120		181		--		106		18		856
Ending Balances	$	416	$	185	$	205	$	270	$	311	$	--	$	281	$	30	$	1,698
Evaluated for Impairment:
Individually		--		--		--		--		--		--		--		--		--
Collectively		416		185		205		270		311		--		281		30		1,698
Loans Receivable:
Ending Balances - Total	$	59,410	$	39,230	$	12,919	$	12,317	$	22,660	$	10,981	$	12,369	$	455	$	170,341
Ending Balances:
Evaluated for Impairment:
Individually		14		--		--		--		--		--		--		--		14
Collectively	$	59,396	$	39,230	$	12,919	$	12,317	$	22,660	$	10,981	$	12,369	$	455	$	170,327

The change in the allowance for loan losses by loan portfolio class for the six months ended December 31, 2011, was as follows:

	Real Estate Loans
December 31, 2011	Residential		Commercial			Multi- Family			Land		Construction			Other		Commercial Loans		Consumer Loans			Total
									(In Thousands)
Allowance for loan losses:
Beginning Balances	$	110	$	125		$	140		$	150	$	130		$	--	$	175	$	12		$	842
Charge-Offs		--		--			--			--		--			--		--		--			--
Recoveries		--		--			--			--		--			--		--		--			--
Current Provision		115		(65	)		(37	)		230		(14	)		--		48		(3	)		274
Ending Balances	$	225	$	60		$	103		$	380	$	116		$	--	$	223	$	9		$	1,116
Evaluated for Impairment:
Individually		--		--			--			--		--			--		--		--			--
Collectively		225		60			103			380		116			--		223		9			1,116
Loans Receivable:
Ending Balances - Total	$	48,828	$	34,228		$	13,006		$	11,738	$	13,060		$	7,647	$	12,859	$	472		$	141,838
Ending Balances:
Evaluated for Impairment:
Individually		217		--			--			--		--			--		--		--			217
Collectively	$	48,611	$	34,228		$	13,006		$	11,738	$	13,060		$	7,647	$	12,859	$	472		$	141,621

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of December 31, 2012 and June 30, 2012:

December 31, 2012	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	335	$	335	$	--	$	335	$	--	$	347
Commercial		--		--		--		--		--		--
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	335	$	335	$	--	$	335	$	--	$	347

June 30, 2012	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	14	$	14	$	--	$	14	$	--	$	14
Commercial		--		--		--		--		--		--
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	14	$	14	$	--	$	14	$	--	$	14

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status. Loans totaling $14,000 were in non-accrual status at June 30, 2012. Loans totaling $378,000 were in non-accrual status at December 31, 2012.

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Summary of Accounting Policies (Details)	6 Months Ended
	Dec. 31, 2012
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents maturity period, maximum	90 days

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Loans Receivable (Tables)

6 Months Ended

Dec. 31, 2012

Loans Receivable [Abstract]

Loans receivable

Loans receivable are summarized as follows:

	December 31, 2012			June 30, 2012
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	63,608		$	59,410
Commercial		49,781			39,230
Multi-Family Residential		19,681			12,919
Land		15,022			12,317
Construction		13,403			22,660
Equity and Second Mortgage		2,401			2,520
Equity Lines of Credit		9,039			8,461
Total Mortgage Loans		172,935			157,517
Commercial Loans		14,107			12,369
Consumer Loans
Loans on Savings Accounts		269			227
Automobile and Other Consumer Loans		169			228
Total Consumer and Other Loans		438			455
Total Loans		187,480			170,341
Less:   Allowance for Loan Losses		(1,925	)		(1,698	)
Unamortized Loan Fees		(291	)		(380	)
Net Loans Receivable	$	185,264		$	168,263

Changes in the allowance for loan losses

Following is a summary of changes in the allowance for loan losses:

	Six Months Ended December 31,
	2012		2011
	(In Thousands)
Balance - Beginning of Period	$	1,698	$	842
Provision for Loan Losses		227		274
Loan Charge-Offs		--		--
Balance - End of Period	$	1,925	$	1,116

Credit Quality Indicators

The following tables present the grading of loans, segregated by class of loans, as of December 31, 2012 and June 30, 2012:

December 31, 2012			Special
	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	62,138	$	1,109	$	361	$	--	$	63,608
Commercial		49,781		--		--		--		49,781
Multi-Family Residential		19,681		--		--		--		19,681
Land		15,022		--		--		--		15,022
Construction		13,403		--		--		--		13,403
Equity and Second Mortgage		2,401		--		--		--		2,401
Equity Lines of Credit		8,907		--		132		--		9,039
Commercial Loans		14,107		--		--		--		14,107
Consumer Loans		438		--		--		--		438
Total	$	185,878	$	1,109	$	493	$	--	$	187,480

June 30, 2012	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	58,531	$	517	$	362	$	--	$	59,410
Commercial		39,230		--		--		--		39,230
Multi-Family Residential		12,919		--		--		--		12,919
Land		12,317		--		--		--		12,317
Construction		22,660		--		--		--		22,660
Equity and Second Mortgage		2,520		--		--		--		2,520
Equity Lines of Credit		8,345		27		89		--		8,461
Commercial Loans		12,369		--		--		--		12,369
Consumer Loans		455		--		--		--		455
Total	$	169,346	$	544	$	451	$	--	$	170,341

Aging analysis of past due loans segregated by class of loans

The following tables present an aging analysis of past due loans, segregated by class of loans, as of December 31, 2012 and June 30, 2012:

December 31, 3012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,675	$	507	$	1,444	$	3,626	$	59,982	$	63,608	$	1,109
Commercial		--		--		--		--		49,781		49,781		--
Multi-Family Residential		--		--		--		--		19,681		19,681		--
Land		--		--		--		--		15,022		15,022		--
Construction		--		--		--		--		13,403		13,403		--
Equity and Second Mortgage		--		--		--		--		2,401		2,401		--
Equity Lines of Credit				--		43		43		8,996		9,039		--
Commercial Loans		--		--		--		--		14,107		14,107		--
Consumer Loans		--		--		--		--		438		438		--
Total	$	1,675	$	507	$	1,487	$	3,669	$	183,811	$	187,480	$	1,109

June 30, 2012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,039	$	1,024	$	14	$	3,077	$	56,333	$	59,410	$	--
Commercial		--		--		--		--		39,230		39,230		--
Multi-Family Residential		--		--		--		--		12,919		12,919		--
Land		--		--		--		--		12,317		12,317		--
Construction		--		--		--		--		22,660		22,660		--
Equity and Second Mortgage		--		--		--		--		2,520		2,520		--
Equity Lines of Credit		--		--		--		--		8,461		8,461		--
Commercial Loans		--		--		--		--		12,369		12,369		--
Consumer Loans		--		--		--		--		455		455		--
Total	$	2,039	$	1,024	$	14	$	3,077	$	167,264	$	170,341	$	--

Allowance for loan losses and recorded investment in loans

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the six months ended December 31, 2012 and the year ended June 30, 2012, was as follows:

	Real Estate Loans
December 31, 2012	Residential		Commercial		Multi- Family			Land			Construction			Other		Commercial Loans			Consumer Loans			Total
								(In Thousands)
Allowance for loan losses:
Beginning Balances	$	416	$	185	$	205		$	270		$	311		$	--	$	281		$	30		$	1,698
Charge-Offs		--		--		--			--			--			--		--			--			--
Recoveries		--		--		--			--			--			--		--			--			--
Current Provision		594		135		(108	)		(117	)		(149	)		--		(127	)		(1	)		227
Ending Balances	$	1,010	$	320	$	97		$	153		$	162		$	--	$	154		$	29		$	1,925
Evaluated for Impairment:
Individually		--		--		--			--			--			--		--			--			--
Collectively		1,010		320		97			153			162			--		154			29			1,925
Loans Receivable:
Ending Balances - Total	$	63,608	$	49,781	$	19,681		$	15,022		$	13,403		$	11,440	$	14,107		$	438		$	187,480
Ending Balances:
Evaluated for Impairment:
Individually		335		--		--			--			--			--		--			--			335
Collectively	$	63,273	$	49,781	$	19,681		$	15,022		$	13,403		$	11,440	$	14,107		$	438		$	187,145

	Real Estate Loans
June 30, 2012	Residential		Commercial		Multi-Family		Land		Construction		Other		Commercial Loans		Consumer Loans		Total
	(In Thousands)
Allowance for loan losses:
Beginning Balances	$	110	$	125	$	140	$	150	$	130	$	--	$	175	$	12	$	842
Charge-Offs		--		--		--		--		--		--		--		--		--
Recoveries		--		--		--		--		--		--		--		--		--
Current Provision		306		60		65		120		181		--		106		18		856
Ending Balances	$	416	$	185	$	205	$	270	$	311	$	--	$	281	$	30	$	1,698
Evaluated for Impairment:
Individually		--		--		--		--		--		--		--		--		--
Collectively		416		185		205		270		311		--		281		30		1,698
Loans Receivable:
Ending Balances - Total	$	59,410	$	39,230	$	12,919	$	12,317	$	22,660	$	10,981	$	12,369	$	455	$	170,341
Ending Balances:
Evaluated for Impairment:
Individually		14		--		--		--		--		--		--		--		14
Collectively	$	59,396	$	39,230	$	12,919	$	12,317	$	22,660	$	10,981	$	12,369	$	455	$	170,327

The change in the allowance for loan losses by loan portfolio class for the six months ended December 31, 2011, was as follows:

	Real Estate Loans
December 31, 2011	Residential		Commercial			Multi- Family			Land		Construction			Other		Commercial Loans		Consumer Loans			Total
									(In Thousands)
Allowance for loan losses:
Beginning Balances	$	110	$	125		$	140		$	150	$	130		$	--	$	175	$	12		$	842
Charge-Offs		--		--			--			--		--			--		--		--			--
Recoveries		--		--			--			--		--			--		--		--			--
Current Provision		115		(65	)		(37	)		230		(14	)		--		48		(3	)		274
Ending Balances	$	225	$	60		$	103		$	380	$	116		$	--	$	223	$	9		$	1,116
Evaluated for Impairment:
Individually		--		--			--			--		--			--		--		--			--
Collectively		225		60			103			380		116			--		223		9			1,116
Loans Receivable:
Ending Balances - Total	$	48,828	$	34,228		$	13,006		$	11,738	$	13,060		$	7,647	$	12,859	$	472		$	141,838
Ending Balances:
Evaluated for Impairment:
Individually		217		--			--			--		--			--		--		--			217
Collectively	$	48,611	$	34,228		$	13,006		$	11,738	$	13,060		$	7,647	$	12,859	$	472		$	141,621

Loans individually evaluated for impairment segregated by class of loans

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of December 31, 2012 and June 30, 2012:

December 31, 2012	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	335	$	335	$	--	$	335	$	--	$	347
Commercial		--		--		--		--		--		--
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	335	$	335	$	--	$	335	$	--	$	347

June 30, 2012	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	14	$	14	$	--	$	14	$	--	$	14
Commercial		--		--		--		--		--		--
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	14	$	14	$	--	$	14	$	--	$	14

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Related Party Transactions

6 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

7.           Related Party Transactions

Certain directors and executive officers were indebted to the Bank in the approximate aggregate amounts of $2.2 million and $1.9 million at December 31, 2012 and June 30, 2012, respectively.

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Earnings Per Share

6 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

5.           Earnings Per Share

Basic earnings per common share are computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three and six months ended December 31, 2012 and 2011 were calculated as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
	(In Thousands, Except Per Share Data)
Net income	$	881	$	680	$	1,819	$	1,482
Weighted average shares outstanding – basic		2,420,591		2,865,535		2,507,336		2,862,055
Effect of dilutive common stock equivalents		67,839		33,408		67,797		30,719
Adjusted weighted average shares outstanding- diluted		2,488,430		2,898,943		2,575,133		2,892,774
Basic earnings per share	$	0.36	$	0.24	$	0.73	$	0.52
Diluted earnings per share	$	0.35	$	0.23	$	0.71	$	0.51

For the three months ended December 31, 2012 and 2011, there were outstanding options to purchase 287,540 and 152,816 shares, respectively, at a weighted average exercise price of $13.44 per share and for the six months ended December 31, 2012 and 2011, there were outstanding options to purchase 304,007 and 154,856 shares, respectively, at a weighted average exercise price of $13.31 per share. For the quarter ended December 31, 2012, 68,000 options were included in the computation of diluted earnings per share.

Recognition and Retention Plan (continued)

The following table presents the components of weighted average outstanding shares for purposes of calculating earnings per share:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Average common shares issued		3,062,386			3,051,881			3,062,386			3,049,842
Average unearned ESOP shares		(174,815	)		(186,346	)		(176,256	)		(187,787	)
Average unearned RRP shares		(77,808	)		--			(77,808	)		--
Average treasury shares		(389,172	)		--			(300,986	)		--
Weighted average shares outstanding		2,420,591			2,865,535			2,507,336			2,862,055

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Stock-Based Compensation

6 Months Ended

Dec. 31, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

6.           Stock-Based Compensation

Recognition and Retention Plan

On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Recognition and Retention Plan and Trust Agreement (the "2005 Recognition Plan") as an incentive to retain personnel of experience and ability in key positions.  The aggregate number of shares of the Company's common stock subject to award under the 2005 Recognition Plan totaled 63,547 shares (as adjusted for the exchange ratio of 0.9110 on December 22, 2010).  As the shares were acquired for the 2005 Recognition Plan, the purchase price of these shares was recorded as a contra equity account.  As the shares are distributed, the contra equity account is reduced.  During the six months ended December 31, 2012, 561 shares vested and were released from the 2005 Recognition Plan Trust and 1,686 shares remained in the 2005 Recognition Plan Trust at December 31, 2012.

On December 23, 2011, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2011 Recognition and Retention Plan and Trust Agreement (the "2011 Recognition Plan", together with the 2005 Recognition  Plan, the  "Recognition  Plan") as  an  incentive  to  retain  personnel  of  experience and ability in key positions.  The aggregate number of shares of the Company's common stock available for award under the 2011 Recognition Plan totaled 77,808 shares.  As of December 31, 2012, 69,251 shares were awarded under the 2011 Recognition Plan.

Recognition Plan shares are earned by recipients at a rate of 20% of the aggregate number of shares covered by the Recognition Plan award over five years.  Generally, if the employment of an employee or service as a non-employee director is terminated prior to the fifth anniversary of the date of grant of Recognition Plan share award, the recipient shall forfeit the right to any shares subject to the award that have not been earned.  In the case of death or disability of the recipient or a change in control of the Company, the Recognition Plan awards will be vested and shall be distributed as soon as practicable thereafter.

The Recognition Plan cost is recognized over the five year vesting period. During the six months ended December 31, 2012, the Company recognized $105,000 in expense related to the Recognition Plan.

Stock Option Plan

On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan (the "2005 Option Plan") for the benefit of directors, officers, and other key employees.  The aggregate number of shares of common stock reserved for issuance under the 2005 Option Plan totaled 158,868 (as adjusted).  Both incentive stock options and non-qualified stock options may be granted under the 2005 Option Plan.  As of December 31, 2012, 104,566 options were outstanding under the 2005 Stock Option Plan and 2,133 were available for future grant.

On December 23, 2011, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2011 Stock Option Plan (the "2011 Option Plan", together with the 2005 option plan, the "Option Plan") for the benefit of directors, officers, and other key employees.  The aggregate number of shares of common stock reserved for issuance under the 2011 Option Plan totaled 194,522.  Both incentive stock options and non-qualified stock options may be granted under the Option Plan.  As of December 31, 2012, 169,235 options had been granted under the 2011 Option Plan and 25,287 were available for future grant.

Under the Option Plan, the exercise price of each option cannot be less than the fair market value of the underlying common stock as of the date of the option grant and the maximum term is ten years. Incentive stock options and non-qualified stock options granted under the Option Plan become vested and exercisable at a rate of 20% per year over five years, commencing one year from the date of the grant, with an additional 20% vesting on each successive anniversary of the date the option was granted.  No vesting shall occur after an employee's employment or service as a director is terminated.  In the event of the death or disability of an employee or director or change in control of the Company, the unvested options shall become vested and exercisable.  The Company accounts for the Option Plan under the guidance of FASB ASC Topic 718, Compensation – Stock Compensation.

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Fair Value Disclosures

6 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures

8.           Fair Value Disclosures

The following disclosure is made in accordance with the requirements of ASC 825, Financial Instruments.  Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash.  In cases where quoted market prices are not available, fair values have been estimated using the present value of future cash flows or other valuation techniques.  The results of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment.  Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments.

ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements.  These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.

The following methods and assumptions were used by the Company in estimating fair values of financial instruments:

Cash and Cash Equivalents

The carrying amount approximates the fair value of cash and cash equivalents.

Securities to be Held-to-Maturity and Available-for-Sale

Fair values for investment securities, including mortgage-backed securities, are based on quoted market prices, where available.  If quoted market prices are not available, fair values are based on quoted  market prices of comparable instruments.  The carrying values of restricted or non-marketable equity securities approximate their fair values.  The carrying amount of accrued investment income approximates its fair value.

Mortgage Loans Held-for-Sale

Because these loans are normally disposed of within ninety days of origination, their carrying value closely approximates the fair value of such loans.

Loans Receivable

For variable-rate loans that re-price frequently and with no significant changes in credit risk, fair value approximates the carrying value.  Fair values for other loans are estimated using the discounted value of expected future cash flows. Interest rates used are those being offered currently for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest receivable approximates its fair value.

Deposit Liabilities

The fair values for demand deposit accounts are, by definition, equal to the amount payable on demand at the reporting date, that is, their carrying amounts.  Fair values for other deposit accounts are estimated using the discounted value of expected future cash flows. The discount rate is estimated using the rates currently offered for deposits of similar maturities.

Advances from Federal Home Loan Bank

The carrying amount of short-term borrowings approximates their fair value.  The fair value of long-term debt is estimated using discounted cash flow analyses based on current incremental borrowing rates for similar borrowing arrangements.

Off-Balance Sheet Credit-Related Instruments

Fair values for outstanding mortgage loan commitments to lend are based on fees currently charged to enter into similar agreements, taking into account the remaining term of the agreements, customer credit quality, and changes in lending rates.

The fair value of interest rate floors and caps contained in some loan servicing agreements and variable rate mortgage loan contracts are considered immaterial within the context of fair value disclosure requirements.  Accordingly, no fair value estimate is provided for these instruments.

The carrying amount and estimated fair values of the Company's financial instruments were as follows:

	December 31, 2012				June 30, 2012
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	5,475	$	5,475	$	34,863	$	34,863
Securities Available-for-Sale		59,038		59,038		68,426		68,426
Securities to be Held-to-Maturity		1,633		1,633		1,381		1,381
Loans Held-for-Sale		8,377		8,377		11,157		11,157
Loans Receivable		185,264		187,383		168,263		170,138
Financial Liabilities
Deposits		196,158		198,449		221,436		225,651
Advances from FHLB		30,243		30,933		23,469		24,097
Off-Balance Sheet Items
Mortgage Loan Commitments		266		266		237		237

The estimated fair values presented above could be materially different than net realizable value and are only indicative of the individual financial instrument's fair value.  Accordingly, these estimates should not be considered an indication of the fair value of the Company taken as a whole.

The Company follows the guidance of FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820").  ASC 820 affirms a framework for measuring fair value and expands disclosures about fair value measurements.  SFAS No. 157 was issued to establish a uniform definition of fair value.  The definition of fair value is market-based as opposed to company-specific, and includes the following:

·   Defines fair value as the price that would be received to sell an asset or paid to transfer a liability, in either case, through an orderly transaction between market participants at a measurement date and establishes a framework for measuring fair value;

·   Establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date;

·   Nullifies the guidance in EITF 02-3, which required the deferral of profit at inception of a transaction involving a derivative financial instrument in the absence of observable data supporting the valuation technique;

·   Eliminates large position discounts for financial instruments quoted in active markets and requires consideration of the company's creditworthiness when valuing liabilities; and

·   Expands disclosures about instrument that are measured at fair value.

The standard establishes a three-level valuation hierarchy for disclosure of fair value measurements.  The valuation hierarchy favors the transparency of inputs to the valuation of an asset or liability as of the measurement date.  The three levels are defined as follows:

·   Level 1 – Fair value is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets in which the Company can participate.

·   Level 2 – Fair value is based upon (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly; (c) inputs other than quoted prices that are observable for the asset or liability or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

·   Level 3 – Fair value is based uponinputs that are unobservable for the asset or liability.  These inputs reflect the Company's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  These inputs are developed based on the best information available in the circumstances, which include the Company's own data. The Company's own data used to develop unobservable inputs are adjusted if information indicates that market participants would use different assumptions.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Fair values of assets and liabilities measured on a recurring basis at December 31, 2012 and June 30, 2012 are as follows:

	Fair Value Measurements Using:
December 31, 2012	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	544	$	544
FNMA Mortgage-Backed Certificates		--		17,643		17,643
GNMA Mortgage-Backed Certificates		--		39,557		39,557
Equity Securities
ARM Fund		1,294		--		1,294
Total	$	1,294	$	57,744	$	59,038

	Fair Value Measurements Using:
June 30, 2012	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	668	$	668
FBNA Mortgage-Backed Certificates		--		22,974		22,974
GNMA Mortgage-Backed Certificates		--		43,482		43,482
Equity Securities
ARM Fund		1,302		--		1,302
Total	$	1,302	$	67,124	$	68,426

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Fair Value Disclosures (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Dec. 31, 2012	Jun. 30, 2012
Mortgage Loans Held-for-Sale [Abstract]
Number of days from origination to dispose Mortgage Loans Held-for-Sale, maximum	90 days
Financial Assets [Abstract]
Securities Available-for-Sale	$ 59,038	$ 68,426
Securities to be Held-to-Maturity	1,633	1,381
Carrying Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	5,475	34,863
Securities Available-for-Sale	59,038	68,426
Securities to be Held-to-Maturity	1,633	1,381
Loans Held-for-Sale	8,377	11,157
Loans Receivable	185,264	168,263
Financial Liabilities [Abstract]
Deposits	196,158	221,436
Advances from FHLB	30,243	23,469
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	266	237
Estimated Fair Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	5,475	34,863
Securities Available-for-Sale	59,038	68,426
Securities to be Held-to-Maturity	1,633	1,381
Loans Held-for-Sale	8,377	11,157
Loans Receivable	187,383	170,138
Financial Liabilities [Abstract]
Deposits	198,449	225,651
Advances from FHLB	30,933	24,097
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	$ 266	$ 237

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Earnings Per Share (Tables)

6 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Calculation of earnings per share

were calculated as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2012		2011		2012		2011
	(In Thousands, Except Per Share Data)
Net income	$	881	$	680	$	1,819	$	1,482
Weighted average shares outstanding – basic		2,420,591		2,865,535		2,507,336		2,862,055
Effect of dilutive common stock equivalents		67,839		33,408		67,797		30,719
Adjusted weighted average shares outstanding- diluted		2,488,430		2,898,943		2,575,133		2,892,774
Basic earnings per share	$	0.36	$	0.24	$	0.73	$	0.52
Diluted earnings per share	$	0.35	$	0.23	$	0.71	$	0.51

Components of average outstanding common shares

The following table presents the components of weighted average outstanding shares for purposes of calculating earnings per share:

	Three Months Ended December 31,						Six Months Ended December 31,
	2012			2011			2012			2011
Average common shares issued		3,062,386			3,051,881			3,062,386			3,049,842
Average unearned ESOP shares		(174,815	)		(186,346	)		(176,256	)		(187,787	)
Average unearned RRP shares		(77,808	)		--			(77,808	)		--
Average treasury shares		(389,172	)		--			(300,986	)		--
Weighted average shares outstanding		2,420,591			2,865,535			2,507,336			2,862,055

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Loans Receivable, Credit Quality Indicators (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	$ 187,480	$ 170,341	$ 141,838
One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	63,608	59,410
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	49,781	39,230	34,228
Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	19,681	12,919	13,006
Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	15,022	12,317	11,738
Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	13,403	22,660	13,060
Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	2,401	2,520
Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	9,039	8,461
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	14,107	12,369	12,859
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	438	455	472
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	185,878	169,346
Pass [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	62,138	58,531
Pass [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	49,781	39,230
Pass [Member] | Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	19,681	12,919
Pass [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	15,022	12,317
Pass [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	13,403	22,660
Pass [Member] | Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	2,401	2,520
Pass [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	8,907	8,345
Pass [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	14,107	12,369
Pass [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	438	455
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	1,109	544
Special Mention [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	1,109	517
Special Mention [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	27
Special Mention [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	493	451
Substandard [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	361	362
Substandard [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	132	89
Substandard [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	$ 0	$ 0

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements of Comprehensive Income [Abstract]
Net Income	$ 881	$ 680	$ 1,819	$ 1,482
Other Comprehensive Income (Loss), Net of Tax
Unrealized Holding Gain (Loss) on Securities Available-for-Sale, Net of Tax of $158 and $106 in 2012, respectively, and $242 and $20 in 2011, respectively	(307)	(470)	(204)	39
Reclassification Adjustment for Gain Included in Net Income, Net of Tax of $47 and $75 in 2012, respectively, and $37 and $98 in 2011, respectively	(90)	(72)	(147)	(189)
Net Other Comprehensive Income (Loss)	(397)	(542)	(351)	(150)
Total Comprehensive Income	$ 484	$ 138	$ 1,468	$ 1,332

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Securities

6 Months Ended

Dec. 31, 2012

Securities [Abstract ]

Securities

2.           Securities

The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:

	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	518	$	26	$	--	$	544
FNMA Mortgage-Backed Certificates		16,172		1,471		--		17,643
GNMA Mortgage-Backed Certificates		39,511		162		116		39,557
Total Debt Securities		56,201		1,659		116		57,744
Equity Securities
176,612 Shares, AMF ARM Fund		1,291		3		--		1,294
Total Securities Available-for-Sale	$	57,492	$	1,662	$	116	$	59,038
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
13,831 Shares – Federal Home Loan Bank		1,383		--		--		1,383
630 Shares – First National Bankers  Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,633		--		--		1,633
Total Securities Held-to-Maturity	$	1,633	$	--	$	--	$	1,633

	June 30, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	635	$	33	$	--	$	668
FNMA Mortgage-Backed Certificates		21,099		1,875		--		22,974
GNMA Mortgage-Backed Certificates		43,322		160		--		43,482
Total Debt Securities		65,056		2,068		--		67,124
Equity Securities
176,612 Shares, AMF ARM Fund		1,291		11		--		1,302
Total Securities Available-for-Sale	$	66,347	$	2,079	$	--	$	68,426
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
11,307 Shares – Federal Home Loan Bank		1,131		--		--		1,131
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,381		--		--		1,381
Total Securities Held-to-Maturity	$	1,381	$	--	$	--	$	1,381

The amortized cost and fair value of debt securities by contractual maturity at December 31, 2012, follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Within One Year or Less	$	--	$	--	$	--	$	--
One through Five Years		166		171		--		--
After Five through Ten Years		505		524		--		--
Over Ten Years		55,530		57,049		--		--
Total	$	56,201	$	57,744	$	--	$	--

For the six months ended December 31, 2012, proceeds from the sale of securities available-for-sale amounted to $33.3­­­­ million. Gross realized gains amounted to $215,000 for the six months ended December 31, 2012.

The following table shows information pertaining to gross unrealized losses on securities available-for-sale at December 31, 2012 aggregated by investment category and length of time that individual securities have been in a continuous loss position.  There were no unrealized losses on securities at June 30, 2012, and there were no unrealized losses on securities held-to-maturity at December 31, 2012.

	December 31, 2012
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale:
Debt Securities
Mortgage-Backed Securities	$	116	$	30,922	$	--	$	--
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	116	$	30,922	$	--	$	--

The Company's investment in equity securities consists primarily of FHLB stock, a $1.3 million (book value) investment in an adjustable-rate mortgage fund (referred to as the ARM Fund) and shares of First National Bankers Bankshares, Inc. ("FNBB").  The fair value of the ARM Fund has traditionally correlated with the interest rate environment.  At December 31, 2012, the unrealized gain on this investment was $3,000.  Management monitors its investment portfolio to determine whether any investment securities which have unrealized losses should be considered other than temporarily impaired.

At December 31, 2012, securities with a carrying value of $3.4 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $94.6 million were pledged to secure FHLB advances.

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Loans Receivable, Aging Analysis of Past Due Loans (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	$ 1,675	$ 2,039
60-89 Days Past Due	507	1,024
Greater Than 90 Days	1,487	14
Total Past Due	3,669	3,077
Current	183,811	167,264
Total Loans Receivable	187,480	170,341	141,838
Recorded Investment > 90 Days and Accruing	1,109	0
One-to-Four Family Residential [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	1,675	2,039
60-89 Days Past Due	507	1,024
Greater Than 90 Days	1,444	14
Total Past Due	3,626	3,077
Current	59,982	56,333
Total Loans Receivable	63,608	59,410
Recorded Investment > 90 Days and Accruing	1,109	0
Commercial [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Current	49,781	39,230
Total Loans Receivable	49,781	39,230	34,228
Recorded Investment > 90 Days and Accruing	0	0
Multi-Family Residential [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Current	19,681	12,919
Total Loans Receivable	19,681	12,919	13,006
Recorded Investment > 90 Days and Accruing	0	0
Land [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Current	15,022	12,317
Total Loans Receivable	15,022	12,317	11,738
Recorded Investment > 90 Days and Accruing	0	0
Construction [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Current	13,403	22,660
Total Loans Receivable	13,403	22,660	13,060
Recorded Investment > 90 Days and Accruing	0	0
Equity and Second Mortgage [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Current	2,401	2,520
Total Loans Receivable	2,401	2,520
Recorded Investment > 90 Days and Accruing	0	0
Equity Lines of Credit [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days	43	0
Total Past Due	43	0
Current	8,996	8,461
Total Loans Receivable	9,039	8,461
Recorded Investment > 90 Days and Accruing	0	0
Commercial Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Current	14,107	12,369
Total Loans Receivable	14,107	12,369	12,859
Recorded Investment > 90 Days and Accruing	0	0
Consumer Loan [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Current	438	455
Total Loans Receivable	438	455	472
Recorded Investment > 90 Days and Accruing	$ 0	$ 0

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Deposits (Tables)

6 Months Ended

Dec. 31, 2012

Deposits [Abstract]

Summarized Deposits

Deposits at December 31, 3012 and June 30, 2012 consist of the following classifications:

	December 31, 2012		June 30, 2012
	(In Thousands)
Non-Interest Bearing	$	26,803	$	20,575
NOW Accounts		19,071		16,887
Money Markets		37,383		68,446
Passbook Savings		5,960		6,893
		89,217		112,801
Certificates of Deposit		106,941		108,635
Total Deposits	$	196,158	$	221,436